Despite Buffett’s Anti Bitcoin Statements, His Company Invests in Crypto Stock

• Renowned Bitcoin critic Warren Buffett always finds opportunities to express his negative views on the crypto industry.
• Buffett, with a doomsday expectation, stated in 2018, ‘In general, you can almost say with certainty that cryptocurrencies will come to a bad ending.’
• Nu Holdings (NYSE: NU), originally known as Nubank, revolutionized the Latin American banking sector in 2013.

Contrary to Warren Buffett’s anti-Bitcoin statements, it has been revealed that Berkshire Hathaway has invested in a crypto-related stock.

Berkshire Hathaway Invests in Crypto Stock

Renowned Bitcoin critic Warren Buffett always finds opportunities to express his negative views on the crypto industry. Despite his highly unfavorable stance, Buffett refrained from buying Bitcoin even when it was priced around $15,000 in 2018.

With a pessimistic outlook, Buffett stated in 2018, ‘In general, you can almost say with certainty that cryptocurrencies will come to a bad ending.’ Five years later, Bitcoin’s price surpassed $50,000 again, reaching an all-time high of $69,000, and market expectations suggest it could go above $100,000 after this year’s halving. However, Buffett continues to stick to his position.

Yet not every follower of Buffett chooses to adhere to his rule. Despite his well-known disdain, the company he owns, Berkshire Hathaway, takes a different approach. We are talking about Nu Holdings (NYSE: NU). Following a $500 million initial investment in Nubank, the leading Latin American digital bank, in 2021, which was originally known as Nubank, Buffett or one of his advisors increased the stake to $1 billion.

Nu Holdings (NYSE: NU), originally known as Nubank, revolutionized the Latin American banking sector in 2013. Nubank disrupted the market by challenging traditional banks that imposed hefty fees, offering a digitally-focused approach and quickly attracting a broad customer base by providing affordable financial services through technology.

Founded by experienced entrepreneur David Velez, with a venture capital background at Sequoia Capital, Nubank’s digitally-focused strategy presents a significant challenge to traditional banks hindered by outdated and costly business models.

Nu Bank Offers Bitcoin and More

Among various innovative products, Nucripto, launched in 2022, allows users to trade various cryptocurrencies like Bitcoin and Ethereum. Nucripto managed to attract over a million active users in its launch month.

This strategic positioning not only highlights Nubank’s competitive advantage but also emphasizes Berkshire Hathaway’s foresight in recognizing the potential of digital banking and crypto services in transforming the financial industry.

While Nubank’s primary revenue still comes from traditional financial products, the company’s foray into the cryptocurrency space marks it as a significant player in Latin America’s digital currency market. The introduction of its own digital currency, Nucoin, and the addition of cryptocurrencies like Polkadot and Avalanche demonstrate the increasing impact in the region.

Nubank is not the first stock Buffett has chosen that goes against his financial ideologies in many ways. For instance, Buffett has avoided technology stocks for decades and has a long history with banks. Berkshire Hathaway owns shares in Bank of America and Citigroup, and it has held shares in Wells Fargo for years.