Key takeaways:
-
Warren Buffett’s Berkshire Hathaway earned $250 million from its full exit from crypto-friendly Nubank.
-
The choice to divest didn’t seem like performance-based—Nu Holdings posted document income in 2024 and Q1 2025.
-
Buffett’s exit aligns with Berkshire’s broader monetary sector pullback and rising money reserve technique.
Warren Buffett, the legendary investor lengthy identified for his skepticism towards cryptocurrencies, has absolutely exited his place in one in all Latin America’s most crypto-friendly banks, Nubank, earlier than his departure from Berkshire Hathaway.
Berkshire earns $250 million from crypto investments
A May 15 filing with the US Securities and Change Fee (SEC) confirmed that Berkshire has fully liquidated its positions in Nubank’s mum or dad agency, Nu Holdings, ending its stake within the digital financial institution altogether.
Berkshire started divesting its 40.2 million Nubank shares in 2024, promoting roughly 20.7 million within the third quarter at a mean worth of $13.46 per share, based on information useful resource Stock Circle.
Within the fourth quarter, it offered a further 46.3 million shares at a mean worth of $13.22. The ultimate tranche of 40.2 million shares was offered within the first quarter of 2025 at a mean worth of $11.83.
These transactions culminated in a complete acquire of roughly $250 million from the preliminary funding.
NU doing properly with out Buffett
Buffett’s divestment from Nu Holdings additional follows the latter’s spectacular earnings in latest quarters.
In Q1 2025, the agency reported a web earnings of $557.2 million, marking a 47% enhance in comparison with the identical quarter within the earlier yr. Adjusted web earnings reached $606.5 million, reflecting a 37% year-over-year progress.
In 2024, Nu Holdings achieved an annual web earnings of $1.972 billion, representing a 91% enhance from 2023, indicating that Berkshire’s resolution to liquidate NU shares fully was not about its efficiency.
Buffett’s exit aligns somewhat with Berkshire’s broader retreat from the monetary sector. In Q1 2025, it additionally offered off Citigroup and lower its Financial institution of America stake, unloading over $2.1 billion in shares.
These strikes pushed Berkshire’s cash reserves to a document $347.8 billion, with $305.5 billion in short-term US Treasurys.
Nubank has been among the many most energetic digital banks embracing crypto providers in Brazil, providing buying and selling in Bitcoin (BTC), Ether (ETH), XRP (XRP), and different prime cryptocurrencies straight via its app.
Associated: Berkshire-backed Nubank adds ADA, NEAR, ATOM to crypto offerings
In 2022, the neobank allocated 1% of its web belongings to BTC, furthering Buffett’s oblique publicity to Bitcoin regardless of his criticism towards the cryptocurrency, which he as soon as known as a “rat poison squared.”
This text doesn’t include funding recommendation or suggestions. Each funding and buying and selling transfer includes threat, and readers ought to conduct their very own analysis when making a call.
