By Daily Mail (U.S.) | Created at 2025-01-21 19:31:57 | Updated at 2025-01-24 05:27:11
2 days ago
Warren Buffett has long been a vocal critic of cryptocurrency, famously calling it 'rat poison,' a 'gambling token,' and predicting it will come to a 'bad ending.'
But despite his disdain for digital assets, particularly Bitcoin, the billionaire is actually invested in a company tied to the cryptocurrency market.
That company's share price soared 27 percent last year - meaning Buffett's Berkshire Hathaway is making a substantial profit.
Nu Holdings is a digital banking company which launched in Brazil around a decade ago, and now has more than 100 million customers in Brazil, Colombia and Mexico.
Nubank, which is one of the world's largest digital challenger banks, allows users to trade Bitcoin and other cryptocurrencies.
It also launched its own cryptocurrency trading platform, Nucripto, in 2023, which acquired more than 1 million users in its first month.
Buffett's Berkshire Hathaway initially invested $500 million in Nubank in 2021 ahead of its IPO.
And now the legendary investor holds over 86 million shares in the company, as of the third quarter of 2024. These are valued at $1.179 billion, according to Benzinga.
Warren Buffett is known to be a vocal critic of cryptocurrency, calling it a 'rat poison,' and a 'gambling token'
The 94-year-old also has not sold a single share in the company since acquiring his stake.
While the stock dipped slightly at the end of last year, it was up by around 27 percent in 2024, according to Benzinga.
This came off a strong 2023, in which the stock was up nearly 100 percent.
Back in 2018, the 'Oracle of Omaha' famously described Bitcoin at Berkshire Hathaway's annual shareholder meeting as 'probably rat poison squared.'
That same year, he also quipped: 'In terms of cryptocurrencies generally, I can say almost with certainty that they will come to a bad ending.'
Buffett is known for his safe and long-term approach to investing, while cryptocurrencies are notoriously volatile.
While the cryptocurrency business makes up a somewhat small portion of Nubank's revenue, its gains may raise questions as to whether the investor may be inclined to rethink his stance on cryptocurrencies.
The cryptocurrency industry as a whole has hailed the arrival of Donald Trump in the White House as a positive moment.
The President has said he will introduce policies supportive of digital currencies, and both him and his wife Melania have launched their own meme coins in the last several days.
Bitcoin hit a new high of $109,000 on the day of Trump's inauguration on Monday.
Nu Holdings made substantial gains in 2024, making a profit for Berkshire Hathaway
The cryptocurrency industry as a whole has hailed the arrival of Donald Trump in the White House as a positive moment
Nubank CEO David Velez said a new presidential administration should create a more favorable environment for fintech
On Tuesday, however, cryptocurrencies retreated, likely due to any concrete policy announcements made about the sector during the inauguration.
Nubank CEO David Velez told Reuters earlier this week that the new presidential administration should create a more favorable environment for Nubank to consider entering the US market.
'With the U.S. getting on board, fintech and crypto are back,' Velez said.
'When an administration suddenly sees fintech as being good for consumers and more competition, that makes it more attractive.'
Others are urging investors to be cautious in the early days of the new administration - and to see what transpires.
'If Donald Trump delivers on his election promises, we could see cryptocurrency markets continue to surge,' Kenneth Lamont, a principal at Morningstar, told CNBC.
'However, investors would do well to resist the siren call of fear of missing out, and sit on their hands.'
