Crypto-Friendly Bank Backed by Warren Buffett’s Berkshire Hathaway Plans $2 Billion IPO on Nasdaq
Nubank, as a crypto-friendly digital bank, offers investments in an exchange-traded fund (ETF). The bank states:
“The cryptocurrency ETF can be a way to democratize access to the crypto market further.”
Nubank, or Nu Pagamentos SA, is working on an initial public offering (IPO) of over $2 billion on Nasdaq, the stock exchange. Bloomberg, citing people informed on the matter, recently reported that the bank plans to end this year.
In June, Billionaire Warren Buffet’s Berkshire Hathaway supports nu Pagamentos SA. Berkshire Hathaway invested $500 million in the Brazil-based digital bank. The bank has over 40 million customers in entire South America.
According to the estimates, Nu Pagamentos SA may experience a valuation of over $40 million. Nevertheless, discussions are still alive, and details may change rapidly. The bank benefited from private fundraising in 2019, which led its value to reach $10.4 billion. In addition, thanks to the $500 million investment by Berkshire Hathaway, its valuation climbed to $30 billion by June.
If the estimations prove correct and Nubank’s valuation exceeds $40 billion, the São Paulo-based digital bank could become the second most valued financial institution in South America. While the most valued one today is Itau Unibanco Holding SA in Brazil with a $55 billion market value, the second one is Banco Bradesco SA with around $41 billion market value.
Several banks are handling the share sale within the planned initial public offering (IPO). The names include Citigroup Inc., UBS Group AG, Morgan Stanley, and Goldman Sachs Group Inc.
As a crypto-friendly bank, Nubank allows investments in a bitcoin exchange-traded fund (ETF). These investments are made via a trading platform called Easynvest. The bank acquired this platform and renamed it “Easynvest by Nubank” at the beginning of this year.
The bitcoin exchange-traded fund (ETF) offered by Easynvest by Nubank is QBTC11 by QR Asset Management. The fund became the first bitcoin ETF that the Securities and Exchange Commission (CVM) approved in Brazil. In addition, the bitcoin ETF is listed on the B3 stock exchange, among the largest stock exchanges in South America and the second oldest in the country. Nu Pagamentos SA, on the Easynvest by Nubank website, cited prominent figures from the cryptocurrency universe, Tesla CEO Elon Musk, and Bridgewater Associates founder Ray Dalio:
“A quick [online] search is enough to discover that even billionaires like Elon Musk and Ray Dalio have already taken an interest in this type of asset.”
The bank also stated:
“The cryptocurrency ETF can be a way to democratize access to the crypto market further.”The bank
Do you agree with the statement that crypto ETFs can democratize access to the crypto market? What do you think about Nubank’s latest actions? Share your ideas in the comments section!