How Warren Buffett Just Got More Heavily Invested in ‘Rat Poison’ Cryptocurrency – Nu Holdings (NYSE:NU)
Known as the “Oracle of Omaha” and by other nicknames, legendary investor Warren Buffett is a man of many names. Buffett also gives out nicknames from time to time, including calling leading cryptocurrencies Bitcoin BTC/USD “rat poison squared.”
Here’s how Buffett may be more invested in cryptocurrency than he knows.
Buffett’s Bitcoin Ties: Buffett and Berkshire Hathaway Inc (NYSE: BRK-A) (NYSE: BRK-B) invested $500 million in the Brazilian digital bank Nubank. The digital bank was listed on the stock exchange in December 2021[ads1] as Now Holdings NOT and Buffett invested additional capital in the company.
Now with an investment of more than $1 billion in Nu Holdings, Buffett may be more exposed to the growth of the cryptocurrency market than he knows or probably wants to be.
Nu Holdings unit Nubank is launching its own cryptocurrency through a partnership with Polygon MATIC/USD to strengthen its loyalty and rewards for customers.
Nubank plans to launch its own token called Nucoin in the first half of 2023, which will be provided free of charge to customers and will be the start of a new “groundbreaking rewards program.”
– We open a door to the future. Nucoin is a new way to recognize customer loyalty and drive further engagement with Nubank products,” Nucoin General Manager Fernando Czapski so.
Nubank has over 70 million customers in Brazil and other Latin American countries. The plan is to offer customers discounts and benefits by using Nucoins.
Benzinga reported in May 2022 that Nu Holdings launched cryptocurrency trading for Bitcoin and Ethereum ETH/USD and add Bitcoin to the balance.
Czapski said this is another step ahead of the company’s push into blockchain technology and cryptocurrency.
Polygon co-founder Sandeep Nailwal praised the move.
“The fact that one of the largest digital banking institutions in the world is offering its own cryptocurrency is a strong testament to the utility that blockchain and crypto have to offer,” said Nailwal.
Related Link: How to Buy Bitcoin
Why it matters to Warren: Buffett has been one of the biggest opponents of Bitcoin and the rise of cryptocurrencies. Buffett was even labeled enemy number one of Bitcoin by Peter Thiel.
Buffett said he would not buy Bitcoin even if it fell to $25.
Buffett has been a proponent of investing in value companies and also investing in what you know. Buffett often supports the companies he invests in, whether it’s by drinking pop from them Cola IS or switch from a flip phone to an iPhone from Apple Inc AAPL.
The legendary investor invests in companies he believes have a strong attribute and have products that consumers want and need.
Buffett may have direct and indirect exposure to Bitcoin and other cryptocurrencies, meaning that when he talks negatively about Bitcoin, he is talking against a growth area with at least one of his investments.
Berkshire Hathaway also owns a stake in Visa Inc Vwhich gives Buffett partial ownership of one CryptoPunk NFT.
CEO of Polygon Studios Ryan Wyatt celebrated the partnership and also mentioned Buffett.
“We’re excited about this partnership with Nubank and another great company building on Polygon! Let’s also welcome Warren Buffett to the room,” Wyatt tweeted with a blinking emoji.
NO price action: Nu shares rose 4% to $4.54 on Friday, against a 52-week range of $3.26 to $12.24.
Illustration via Shutterstock.
