In the middle of a flood, the biggest neobank buys bitcoin

Tumble, carnage, crash, rout… the terms that we see flourishing about the crypto market reflect a deluge that hardly encourages optimism. Although very slightly up at the time of writing, bitcoin has lost more than 30% in recent days, falling below the symbolic cap of $30,000.

However, this did not prevent Nubank, a Brazilian neobank incidentally the largest in the world, from announcing a major initiative in crypto. Concretely, the company plans to invest 1% of its equity in the digital asset, and will offer new functions to its users to allow them to buy, sell, and hold cryptos, as do the cryptos. cryptocurrency exchange platforms.

The neobank’s exposure to Bitcoin is a strategy that other companies have already chosen to follow. The reference among all is MicroStrategy. This software company started investing in Bitcoin in August 2020. Since then, it has grown to over 130,000 bitcoins held, worth over $4 billion (at the average purchase price per bitcoin of 30 $700).

The climate of panic does not affect the optimism of this neobank

In a press release published for the occasion, the neobank close to the model of Revolut and N26 explains its strategy by the idea of ​​​​responding to a demand from its customers. He precisely points out that the number of people who invest in cryptoassets in Brazil increased by 938% in 2021.

Quoted by Forbes BrazilDavid Velez, president and founder of Nubank, confirms this idea: “There is no doubt that cryptocurrencies are a growing trend in Latin America. We have been following the market closely and believe that cryptocurrencies have transformative potential in this region. »

This project confirms the trend pursued by some industry giants, such as Revolut, which offers its users a service to sell and store cryptocurrencies. Alan Chang, the neobank’s revenue manager, recently analyzed the potential of this market, which could prove very profitable for his company:

For us, cryptocurrencies are a fully-fledged financial services vertical, which is obviously growing very rapidly with many interesting applications being built on the web3. So obviously we would like to be part of that and we have a lot of exciting projects that we can’t share yet.

However, and in the current context, the situation remains perilous in the sector, to say the least. The most emblematic example is provided by Coinbase, which is currently in great difficulty because its users are investing much less due to the fall in value of bitcoin. Enough to unscrew the price of its share on the stock market. To find out more, we have precisely detailed the best ways to protect your cryptos in this article.


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