Warren Buffett's Berkshire Hathaway Ventures Into Crypto Investment
In a significant shift, Berkshire Hathaway, led by CEO Warren Buffett, has begun investing in cryptocurrency-related ventures, reversing Buffett's long-standing opposition to digital currencies. The company recently acquired additional shares in Nu Holdings Ltd., a Brazilian digital bank known for its cryptocurrency platform.
Berkshire Hathaway's initial investment in Nu Holdings was $500 million during a Series G funding round in 2021, followed by another $250 million later. The stock of Nu Holdings has seen a robust 34% increase year over year, prompting Berkshire to raise its ownership from 0.1% at the end of 2022 to 0.4% by the third quarter of 2024. As of now, Berkshire holds over 86 million shares of Nu, valued at approximately $1.2 billion.
Buffett has historically criticized cryptocurrencies, famously calling Bitcoin "rat poison squared" and expressing skepticism about their future. However, with Berkshire's increasing exposure to the cryptocurrency market, this development may indicate a more lenient approach to digital assets within the investment giant.
Nu Holdings, which launched its cryptocurrency platform, Nubank Cripto, in 2022, allows users to trade prominent cryptocurrencies like Bitcoin and Ethereum. While Buffett has previously distanced himself from the cryptocurrency sector, the recent investments suggest a possible reevaluation of his stance on the digital asset market.
Weekly Newsletter
News summary by melangenews