Warren Buffett Increases Stake in Ripple Partner Sumitomo Corp

Buffett’s Berkshire Hathaway increases its stake in Sumitomo Corp. despite the company’s relationship with Ripple.

Top XRP influencer @sentosumosaba first highlighted the development.

?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

Prominent cryptocurrency critic Warren Buffett disclosed that his company, Berkshire Hathaway, has increased its stakes in Ripple-affiliated Japanese trading company Sumitomo Corp.

Speaking in an interview with Nikkei Asia, Buffett said he is proud of the initial investment in Sumitomo Corp., which prompted the company to increase its stake.

According to the popular Bitcoin critic, Berkshire Hathaway increased its investment in the Japanese trading giant in November based on the performance of its initial investment.

Meanwhile, Berkshire Hathaway also increased its stake in four other Japanese trading giants, including Mitsubishi Corp., Itochu, Marubeni, and Mitsui & Co.

Recall that Buffett’s Berkshire Hathaway revealed in August 2020 that it acquired a slightly above 5% stake in Sumitomo Corp., alongside the other four Japanese trading giants. 

Commenting on the development, Buffet said: 

“We’re very proud of that. [We would meet with the companies this week] to really just have a discussion around their businesses and emphasize our support.”

Sumitomo’s Relationship With Ripple Didn’t Stop Buffet

It is noteworthy that Sumitomo Corp. is affiliated with Ripple and XRP. The core unit of Sumitomo’s financial arm, Sumitomo Mitsui Banking Corporation (SMBC), is a member of SBI Ripple Asia’s Consortium of Banks. It joined the consortium in 2017, as announced by Ripple.

For context, 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.

Despite Sumitomo’s affiliation with Ripple and XRP, Buffett’s Berkshire Hathaway still increased its stakes in the Japanese trading firms.

Meanwhile, Buffett is known for his negative stance towards cryptocurrencies, especially the world’s largest cryptocurrency Bitcoin. Buffett has also called on the United States government to ban Bitcoin and other crypto assets.

The CEO of Berkshire Hathaway neither considers Bitcoin a currency nor an investment vehicle. Instead, he believes the top asset class is a rat poison squared, which will end badly.