- Berkshire Hathaway has increased its stake in Ripple-affiliated Japanese trading company, Sumitomo Corp.
- Despite Sumitomo’s affiliation with Ripple and XRP, Buffett’s company has increased its stakes in the Japanese trading firms.
Prominent cryptocurrency critic and Berkshire Hathaway CEO, Warren Buffett, has increased his company’s stake in Ripple-affiliated Japanese trading firm, Sumitomo Corp. In an interview with Nikkei Asia, Buffett stated that he is proud of the initial investment in Sumitomo Corp., which prompted the company to increase its stake.
👀Buffet is back buying more Japanese financial stocks. 1 of the 5 companies is Sumitomo Corporation. This hits close to home for Ripple, R3 & $XRP Holders, with Sumitomo Corp financial arm = Sumitomo Mitsui Financial Group, which owns approx 9.9% of SBI Holdings, (largest…
— 🌸Crypto Eri 220k+ Followers (Beware of Imposters) (@sentosumosaba) April 11, 2023
The company increased its investment in the Japanese trading giant in November based on the performance of its initial investment. Berkshire Hathaway also increased its stake in four other Japanese trading giants, including Mitsubishi Corp., Itochu, Marubeni, and Mitsui & Co. Despite Sumitomo’s affiliation with Ripple and XRP, Buffett’s Berkshire Hathaway still increased its stake in the Japanese trading firms.
It is noteworthy that Sumitomo Corp. is affiliated with Ripple and XRP. Sumitomo Mitsui Banking Corporation (SMBC), the core unit of Sumitomo’s financial arm, is a member of SBI Ripple Asia’s Consortium of Banks. The Japanese Consortium of Banks is an association of financial institutions in Japan that leverages Ripple’s technology for cross-border payments and settlements.
Furthermore, Sumitomo Mitsui Financial Group invested an undisclosed amount in Ripple’s MoneyTap in 2020. The company also acquired a 9.9% stake in SBI Holdings, a major Ripple partner. The investment was worth more than $580 million at the time.
Buffett is known for his negative stance towards cryptocurrencies, especially Bitcoin, and has called on the United States government to ban Bitcoin and other crypto assets. He does not consider Bitcoin a currency or an investment vehicle, stating that it is a rat poison squared that will end badly.
Despite his criticism, his company’s investment in Sumitomo Corp. demonstrates that he recognizes the potential profitability of companies affiliated with cryptocurrency-related firms.