This Is How Warren Buffet Is Investing In Bitcoin After All

Berkshire Hathaway Inc CEO Warren Buffett is now investing in bitcoin (BTC) despite his negative stance on cryptocurrencies. Buffet and Charlie Munger, the vice chairman of Berkshire Hathaway, have spoken out about cryptocurrencies in the past. Buffet has called crypto “rat poison” and said she wouldn’t even buy bitcoin if the price was $25 each.

Munger also discussed bitcoin at an annual general shareholders’ meeting. He said: “If you have your own retirement account and your kind financial advisor suggests you put all the money in bitcoin, just say no,† Munger then also called bitcoin ‘a kind of venereal disease’

So how does Buffet invest in bitcoin?

This is due to an indirect investment in bitcoin. In June 2021, Berkshire Hathaway invested $500 million in Brazilian bank Nubank. This position was increased when the company became publicly traded under the name Nu Holdings.

It has been known for some time that Nubank is a bank that is enthusiastic about cryptocurrencies. Recently has been announced that the bank will give its clients the opportunity to trade in cryptocurrencies. This allows account holders to trade in bitcoin and ethereum (ETH). In addition, Nubank will also convert 1% of its cash to bitcoin.

Nubank already offers several exchange traded funds (ETFs) to its clients allowing them to gain exposure to cryptocurrencies.

Now it has been announced that Nubank will convert 1% of its cash into bitcoin and Berkshire Hathaway is investing in Nu Holdings, which includes Nubank. And so Warren Buffet indirectly also gets bitcoin on the balance sheet. That’s not all, however. Berkshire Hathaway also invests in Visa Inc, which in turn ensures that Buffet is part of a CryptoPunk non-fungible token (NFT) possession.

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Whether this decision by Nubank will cause Buffet to reconsider his investment is of course unknown, but this seems unlikely due to Buffet’s large stake in the company. Buffet will have to live with the fact that he is now also exposed to the cryptocurrency market.

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