Recent reports reveal an intriguing development: Warren Buffett's Berkshire Hathaway is now profiting from the cryptocurrency sector, an industry he has famously criticized for over a decade. This unexpected turn of events stems from the company's strategic investment in Nu Holdings, a leading Brazilian digital bank that operates its own cryptocurrency platform.
Berkshire's Investment in Nu Holdings
Berkshire Hathaway initially invested $500 million in Nu Holdings during its Series G funding round in 2021. Demonstrating continued confidence, Berkshire later added another $250 million to its position. Nu Holdings, while primarily a digital bank, expanded its services in 2022 by launching Nubank Cripto—a cryptocurrency platform that supports trading and transactions for major digital assets.
The platform initially offered support for Bitcoin, Ethereum, and Polygon. It has since expanded to include other prominent cryptocurrencies like Uniswap and Chainlink. Users can send, receive, and convert cryptocurrencies directly through their Nubank accounts, blending traditional digital banking with crypto services.
According to filings with the U.S. Securities and Exchange Commission (SEC), Berkshire Hathaway's stake in Nu Holdings has grown significantly. From holding just 0.1% of Nu's shares at the end of Q4 2022, Berkshire increased its ownership to 0.4% by Q3 of the 2024 fiscal year. By the end of Q3 2025, this position amounted to over 86 million shares, valued at nearly $1.2 billion.
Buffett's Long-Standing Criticism of Cryptocurrency
Warren Buffett has been one of the most vocal critics of Bitcoin and cryptocurrencies. His skepticism dates back to when Bitcoin was still an emerging concept, unknown to most of the world. Below is a timeline of his public statements on the matter:
- 2013: Stated he had “no plans to transition to Bitcoin.”
- 2014: Described Bitcoin as a “mirage.”
- 2017: Called Bitcoin a bubble that “doesn't produce value.”
- 2018: Predicted cryptocurrencies would “end tragically” and referred to Bitcoin as “rat poison.”
- 2019: Characterized Bitcoin as a “gambling device” and an “illusion that attracts charlatans.”
- 2020: After having dinner with Justin Sun, still insisted Bitcoin had “no value,” joking that his grandchildren would prefer inheriting dollars.
- 2022: Said he wouldn’t buy all the world’s Bitcoin even for $25.
- 2023: During a CNBC interview, he labeled Bitcoin a “gambling token” with no intrinsic value.
- 2024: At Berkshire’s annual shareholder meeting, he reaffirmed his opposition, stating he would never buy Bitcoin and that it is not a productive asset.
Despite these strong opinions, Buffett’s firm is now benefiting from Nu Holdings’ exposure to the crypto market. As of recent data, Nu’s stock has risen nearly 34% year-over-year, contributing positively to Berkshire’s portfolio.
Berkshire's Conservative Strategy and Current Holdings
It is important to note that Berkshire Hathaway is generally known for its conservative investment approach. The company prioritizes stability and long-term value over speculative trends. As of the end of 2024, Berkshire held over $325 billion in cash and cash equivalents, predominantly in U.S. Treasury bills. This highlights that even with the Nu Holdings investment, the overall strategy remains cautious.
The involvement with a crypto-friendly company like Nu may signal a subtle shift or a pragmatic exception rather than a change in core philosophy. It reflects a willingness to invest in strong financial technology companies, even if they operate in sectors Buffett personally views with skepticism.
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Frequently Asked Questions
Why did Warren Buffett invest in Nu Holdings if he dislikes cryptocurrency?
Buffett and his team likely invested in Nu for its strength as a digital bank and its significant market share in Latin America. The crypto aspect may have been secondary to its primary banking business, which aligns with Berkshire’s focus on financially solid companies.
Is Nu Holdings primarily a cryptocurrency company?
No, Nu Holdings is first and foremost a digital bank. It offers savings accounts, credit cards, and personal loans to millions of users. Its cryptocurrency platform is an additional service rather than its core business.
Does this investment mean Buffett now supports Bitcoin?
Not necessarily. Buffett has not publicly changed his stance on Bitcoin. The investment in Nu appears to be based on the company’s overall value and growth potential rather than an endorsement of crypto.
How has Nu Holdings' stock performed recently?
As of recent reporting, Nu Holdings' stock has increased by approximately 34% compared to the previous year. This growth has benefited Berkshire Hathaway’s portfolio.
What other companies does Berkshire Hathaway invest in?
Berkshire holds major positions in well-established companies across various sectors, including Apple, Bank of America, Coca-Cola, and American Express. Its investment in Nu is a smaller part of a much larger, diversified portfolio.
Could Berkshire increase its stake in Nu Holdings in the future?
While possible, it depends on Nu’s performance and market conditions. Berkshire has already increased its stake once, showing ongoing interest in the company’s progress.