Warren Buffett might be a critique of cryptocurrencies, however, the celebrated investor’s firm, Berkshire Hathaway, has increased its stake in a Japanese firm that happens to be a Ripple partner. Buffett has increased his stake in five Japanese firms, one of which is Sumitomo Corporation. The financial arm of Sumitomo Corp. is Sumitomo Mitsui Banking Corporation. The Sumitomo Mitsui Banking Corporation is a part of SBI Ripple Asia’s Consortium of Banks. The corporation joined the consortium in July 2017. Moreover, the Sumitomo Mitsui Banking Corporation owns about 9.9% of SBI Holdings, which is the largest outside shareholder of Ripple.
Buffett is a popular non-believer in cryptocurrencies. However, that has never stopped the trader from investing in firms with exposure to cryptocurrencies. Speaking to Nikkei Asia, Buffett said that he was happy with the initial investment in Sumitomo Corp. The performance of the firm prompted Buffett to increase his firm’s stake in the company. Based on the success of its initial investment, Berkshire Hathaway raised its stake in the major Japanese trading company in November.
Is Warren Buffett bullish on Ripple?
Although Warren Buffett has not directly revealed whether he is bullish on Ripple, he most likely is aware of the cryptocurrency firm‘s legal battle with the SEC (Securities and Exchange Commission). Furthermore, Buffett is an experienced trader and investor. He will probably not put his money into a firm that is linked with a lawsuit it might not win.
Ripple’s battle with the SEC has been ongoing since December 2020. Many expect a verdict sometime this year. Moreover, several attorneys and experts have shared the opinion that Ripple might come out on top in the end. The lawsuit is also expected to give more light on which assets are securities and which are not.