Warren Buffett Makes Sharp U-Turn as Berkshire Hathaway Discloses £893M Stake in Crypto Bank Stock
Billionaire investor Warren Buffett, who previously described Bitcoin (BTC) as “rat poison squared,” made a sharp U-turn as Berkshire Hathaway disclosed a massive stake in Brazilian bank Nu Holdings, which has its own crypto platform.
According to a November 2024 13F filing with the US Securities and Exchange Commission, Berkshire Hathaway disclosed holding over 86.43 million shares worth more than £893.52 million ($1.1 billion).
Nu Holdings’ stock price has jumped over 34% year-over-year. Nu Holdings is Nubank’s parent company. Berkshire Hathaway injected £406.14 million ($500 million) into Nu Holdings in a 2021 Series G funding round, followed by an additional £203.07 million ($250 million) investment.
Nu Holdings rolled out its crypto platform Nubank Cripto in 2022. It supports top digital assets like Bitcoin, Ethereum, and Polygon and has expanded since then to include Uniswap and Chainlink for investors to transact and convert digital tokens.
Buffett’s Stance On Cryptocurrencies
Over the years, the Oracle of Omaha has repeatedly clarified that he is not a fan of cryptocurrencies and avoids investments he doesn’t understand.
In the previous decade, he forecast a bad ending for cryptocurrencies. “In terms of cryptocurrencies, generally, I can say with almost certainty that they will come to a bad ending,” Buffett told CNBC in 2018. “We don’t own any, we’re not short any, we’ll never have a position in them.”
Buffett highlighted how he already faces trouble with “things” he somewhat knows about, so it doesn’t make sense to “take a long or short position in something” he doesn’t understand at all.
Furthermore, the legendary investor said in 2022 that Bitcoin isn’t going to do anything. “If you told me you own all of the Bitcoin in the world and you offered it to me for $25, I wouldn’t take it because what would I do with it?” Buffett said in a shareholders meeting. “I’d have to sell it back to you one way or another.”
However, the latest investment decision could mean Buffett’s view on cryptocurrencies is shifting as the world increasingly adopts blockchain-based digital assets.
Berkshire’s growing stake in Nu Holdings also implies that it benefits from the positive crypto community sentiment that has been driving up stock and token prices in recent times.
Berkshire Hathaway’s Conservative Approach
Berkshire Hathaway has long followed a conservative, low-risk investment approach shaped by Buffett’s value investing principles.
The company has been growing its cash pile, which peaked at £263.75 million($325 billion) in late 2024, mainly in US Treasury bills, signalling a move away from hot stocks despite a year-long market rally.
“Berkshire has succeeded over the decades by being boring in that way,” Meyer Shields, a managing director at boutique investment bank Keefe, Bruyette & Woods, told Fortune in November 2024.
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