Warren Buffett discloses a $1B stake in Bitcoin-friendly Nubank; Canada pushes BTC to $44K

Berkshire Hathaway invested $1 Billion in Bitcoin-friendly Brazilian neobank. Image from CreativeCommons
Berkshire Hathaway invested $1 Billion in Bitcoin-friendly Brazilian neobank. Image from CreativeCommons

Key Takeaways:

  • Warren Buffett invested $1 billion in Nubank, a neobank with Bitcoin ties.
  • BTC jumped to $44,000 after Canada announces plans to include crypto in enhanced surveillance.

NEW DELHI (CoinChapter.com) — Warren Buffett’s Berkshire Hathaway has invested $1 billion in the Bitcoin-friendly digital bank, Nubank, as per Berkshire’s securities filing on Feb 14.

As per the filing, Berkshire Hathaway purchased $1 billion worth of Nubank’s class A shares in the fourth quarter of 2021. Interestingly, the conglomerate sold $1.8 billion of Visa and $1.3 billion of Mastercard stocks, which indicates Buffett might be leaning towards exposure in the fintech sector.

Buffett is famous in the trading circles for his cautious style of investing. Hence, the billionaire investor’s interest in Brazil’s largest fintech bank might help stocks in the fintech sector. Many traders often mirror the so-called “Oracle of Omaha” trading decisions.

In the past, Buffett has shied away from fintech stocks and openly denounced digital assets like Bitcoin (BTC).

Also Read: Bitcoin cannot be superseded by other cryptos as a store of value – Fidelity researcher.

However, it seems Buffett’s outlook towards digital assets is changing. In detail, his firm invested $500 million in the parent company of Nubank in Jun 2021. Moreover, Nubank had also received funding from Sequoia Capital, the VC firm that was an early backer to Apple, Google, and Airbnb.

Sequoia’s ties to Nubank might have been a reason behind Buffett and his team’s bet on the neobank. The New York Stock Exchange (NYSE) listed the Brazilian digital bank in Dec 2021, giving Berkshire Hathaway an RoI of $150 million.

Meanwhile, Buffett’s investment is particularly interesting regarding Nubank’s financial products offerings. In Sept 2020, Nubank acquired Easynvest, a digital investment platform in Brazil. As a result, Nubank offers exposure to Bitcoin through the QR Bitcoin ETF.

Hence, Buffett now has indirect exposure to Bitcoin via Nubank, and the crypto community views it as such.

Bitcoin Prices Jump To $44,000.

Meanwhile, Bitcoin prices jumped to $44,543 on Tuesday after news of Canada planning to include crypto in enhanced surveillance hit the wire.

Canada’s Freedom Convoy protestors took to crypto-based crowdfunding platforms, as traditional firms shunned the protest. In response, Canadian Prime Minister Justin Trudeau invoked the Emergencies Act. The act gives him the power to freeze Freedom Convoy protesters’ bank accounts.

Also Read: 3 ultra bullish Bitcoin events that could send BTC price to $100K in 2022.

Moreover, the government can also monitor “large and suspicious transactions,” whether crypto or fiat.

However, Bitcoin’s reaction to the news was surprisingly positive. The OG crypto jumped above the $44,000 price level to reach an intraday high of $44,543 before prices pared. As such, BTC now has immediate resistance near the $45,000 price level.

BTCUSD on the daily charts with MACD. Source: Tradingview.com
BTCUSD on the daily charts with MACD. Source: Tradingview.com

A move above the $45,000 resistance would provide BTC the push to challenge resistance near the $46,500 price level. Furthermore, a sustained upside movement could see Bitcoin target resistance near the 100-day MA line at $48,500.

Conversely, if Bitcoin fails to establish itself above $44,000 resistance, prices could fall to immediate support near $42,500. In addition, the 26-day exponential MA (white wave) and the 50-day MA (yellow wave) form a support confluence near $41,461.

Meanwhile, $40,000 remains a key support level for Bitcoin. In addition, the trend-based momentum indicator MACD continues to be bullish for Bitcoin. Feb 15’s uptrend also helped arrest the contraction of positive bars on the MACD histogram.

In detail, contracting positive bars on the MACD histogram, which plots the difference between the MACD line (12-day and 26-day EMA difference) and its signal line (9-day EMA of MACD), indicate weakening bullish momentum.

At the time of writing, Bitcoin was trading at $44,029, up 3.5% on the day.

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