Warren Buffett, the legendary investor often dubbed the “Oracle of Omaha,” has consistently voiced his disdain for cryptocurrencies. His anti-crypto stance is well-documented, even remaining unshaken by the recent surge in popularity of Bitcoin and Ethereum spot ETFs. Yet, a surprising detail has emerged: Berkshire Hathaway, Buffett’s investment conglomerate, holds a substantial investment in a company deeply involved in the cryptocurrency space.
That company is Nu Holdings Ltd. (NU), a Brazilian digital banking powerhouse better known as Nubank. Berkshire Hathaway’s recent 13F filing reveals a significant holding of 86,438,997 shares, valued at a staggering $1.17 billion. This investment represents a noteworthy paradox, given Buffett’s outspoken criticism of cryptocurrencies.
The key lies in Nubank’s strategic diversification. While not solely focused on cryptocurrency, Nubank launched its cryptocurrency arm, Nubank Cripto, in 2022. This platform enables users to buy, sell, and hold various crypto assets directly within their Nubank accounts. Initially offering Bitcoin, Ethereum, and Polygon, the platform has expanded its offerings to include popular tokens like Uniswap and Chainlink, alongside stablecoins such as USD Coin. This expansion clearly indicates Nubank’s commitment to integrating cryptocurrency services into its broader financial ecosystem.
The impressive growth of Nu Holdings stock further adds intrigue to this investment. The stock has experienced a remarkable 40.23% increase over the past year, climbing more than 47% since the start of 2024. This performance likely contributes to the overall positive view Berkshire Hathaway has on its investment in Nubank, despite the underlying crypto-related activity.
However, the contradiction remains stark. Buffett’s views on cryptocurrencies haven’t softened. As far back as 2018, he famously declared that cryptocurrencies would ultimately “come to a bad ending,” even going so far as to compare Bitcoin to “rat poison squared” during Berkshire Hathaway’s annual shareholder meeting. This unwavering negativity underscores the puzzling nature of Berkshire Hathaway’s significant investment in a crypto-friendly firm.
The investment in Nubank raises several crucial questions. Is this a calculated diversification strategy by Berkshire Hathaway, acknowledging the growing influence of cryptocurrency in the financial landscape even while maintaining its reservations about the asset class itself? Or is it a bet on Nubank’s overall potential, with the cryptocurrency arm being a comparatively minor aspect of its broader financial services offering? Regardless of the reasoning, the situation presents a fascinating case study in the evolving dynamics of traditional finance and the rapidly expanding cryptocurrency market. The considerable financial commitment from a figure as influential as Warren Buffett only serves to highlight the increasingly blurred lines between these two sectors.
Nu Holdings stock closed at $11.99 on Thursday, down 2.20% for the day. This minor dip doesn’t detract from the overarching narrative: Warren Buffett’s Berkshire Hathaway’s substantial investment in Nubank represents a complex and noteworthy development in the world of finance, forcing a reevaluation of the long-held dichotomy between traditional finance and the disruptive force of cryptocurrencies.
