Warren Buffett, often critical of cryptocurrencies like Bitcoin, finds himself profiting from his investment in a crypto-friendly bank, Nu Holdings, in 2023.
The “Oracle of Omaha” acquired 107 million shares of Nu Holdings, the parent company of Nubank, a Brazil-based fintech company known for its crypto-friendly approach.
Berkshire Hathaway, Buffett’s firm, made two significant investments in Nu Holdings in 2021, totaling $750 million.
As of the second quarter of 2023, Berkshire Hathaway has not sold any of its Nu shares, and the investment has grown to approximately $879.50 million, despite peaking at over $1 billion in February 2022.
Nubank’s crypto-friendly reputation stems from divisions that provide crypto-related services to over 1.35 million users.
This indirect exposure to the cryptocurrency industry includes Easynvest, a trading platform offering a Bitcoin exchange-traded fund (ETF), and Nubank, a digital financial services platform that facilitates BTC and ETH trading.
READ MORE: Former FTX CEO Sam Bankman-Fried Testifies on Relationship and Political Donations in Trial
Nubank also launched a loyalty token on the Polygon blockchain and allocated 1% of its cash holdings to Bitcoin in May 2022, emphasizing its belief in Bitcoin’s potential to disrupt financial services in the region.
Nubank is the largest fintech bank in Latin America, boasting over 80 million customers in Brazil.
In terms of stock performance, Nu Holdings has outperformed other top holdings in Buffett’s portfolio, such as Amazon and Apple, which have seen gains of 54.65% and 36%, respectively.
Apple represents a significant portion of Berkshire Hathaway’s investment portfolio, constituting approximately 45% of its $354 billion portfolio as of September 2023.
Nu Holdings’ stocks have also outperformed Berkshire Hathaway’s stock, which has risen by 9.25% year-to-date.
Remarkably, in 2023, Bitcoin’s price performance has finally caught up with Nu Holdings’ stock, both experiencing a 106% increase year-to-date, coinciding with Bitcoin’s decoupling from the stock market in October.
While some view this as a bullish sign, others attribute Bitcoin’s recent price gains to optimism surrounding Bitcoin ETFs.
Historical data has shown a close correlation between Bitcoin and the stock market, and the recent “decoupling” may be driven by hopes for ETF approval.
However, some caution that a significant stock market downturn could bring Bitcoin back to earth, highlighting the complex interplay between traditional financial markets and the cryptocurrency world.
Discover the Crypto Intelligence Blockchain Council
