Warren Buffett, the legendary investor and CEO of Berkshire Hathaway, has always been known for his critical view of cryptocurrencies. In 2018, he famously called Bitcoin “rat poison squared,” expressing deep doubts about its value and long-term sustainability. Buffett prefers investments in companies with tangible assets and steady cash flows, which makes the wild ups and downs of cryptocurrencies unappealing to him.
However, despite his harsh words, Buffett’s actions tell a more nuanced story. In late 2021, Berkshire Hathaway made a surprising move by investing $1 billion in Nubank, a Brazilian digital bank friendly to cryptocurrencies. According to a 13F filing with the SEC, Berkshire bought 107.1 million shares of Nu Holdings at an average price of $9.38 per share.
This significant investment wasn’t Buffett’s first dance with Nubank. In June 2021, Berkshire Hathaway had already poured $500 million into Nubank during a Series G funding round extension, which valued Nubank at $30 billion.
When Nubank went public in December 2021, Berkshire Hathaway bought another 30 million shares for $250 million. At that point, Nubank’s value skyrocketed to $41.5 billion.
What Does It Mean?
Buffett’s investments in Nubank hint at a careful yet strategic interest in the fintech and crypto space. While he remains cautious about directly investing in cryptocurrencies, his actions suggest a steady adaptation to the changing environment. This strategic move into a digital bank that engages with cryptocurrencies indicates Buffett’s acknowledgment of the growing significance of fintech and the potential benefits of having exposure to innovative financial technologies.
