Warren Buffet’s Crypto-Friendly Bank Set For IPO
Nubank is a Brazil-based banking institution that supports cryptocurrencies. It is backed by billionaire investor Warren Buffet’s Berkshire Hathway Incorporated.
Rumors are now rife in the industry that Nubank is getting ready for its Initial Public Offering on the Nasdaq exchange. The IPO for Nubank is estimated to be valued at around $2 billion. This IPO is reportedly set to materialize at the end of this year.
The decision to go for the IPO comes on the heels of Berkshire Hathway’s $500 million investment in Nubank in June 2021. Nubank already has 40 million customers spread across the Latin American countries and it is estimated to have a total valuation of around $40 billion at present. Nubank was valued at just $10.4 billion in 2019 after some private fundraising efforts. Its valuation soared by almost three times after the investment by Warren Buffet in June.
If Nubank can reach its $40 billion valuations, it will become the second biggest financial institution in Latin America. At present, Brazil’s Itau Unibanco Holding SA holds the leading position, with a valuation of $55 billion.
Nubank’s massive growth and popularity are primarily due to its crypto-friendly features. The bank supports Bitcoin exchange-traded funds like the ETF. Nubank was the ETF investment-supported bank that the Securities and Exchange Commission of Brazil approved.
The world of cryptocurrency and its allied organizations are now the biggest investment avenue for all traders. With billionaires like Elon Musk publicly showing support for cryptocurrencies, crypto-friendly banks like Nubank may become more common in the future. A successful IPO and high valuation for Nubank will further act as proof of concept for bringing cryptocurrency to mainstream financial transactions.
