Warren Buffett’s Firm Boosts Stake in Brazilian Digital Bank

Warren Buffett’s Berkshire Hathaway has expanded its investment in Nu Holdings, a Brazilian digital banking giant, despite Buffett’s famously critical stance on cryptocurrencies.

Recent documents show that Berkshire now holds a 0.4% stake in the company, up from 0.1% in late 2022.

Berkshire initially invested $500 million in Nu Holdings during a funding round in 2021 and later added another $250 million. The conglomerate now owns over 86 million shares, valued at approximately $1.2 billion. This move is significant given Nu Holdings’ 2022 launch of Nubank Crypto, a platform offering support for Bitcoin, Ethereum, and other major digital assets.

Buffett has long been vocal about his skepticism toward cryptocurrency, famously calling Bitcoin “rat poison squared” and predicting its failure. However, Berkshire’s deeper ties to a company active in the crypto space may signal a nuanced shift in its strategy, albeit indirectly.

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Berkshire continues to prioritize a cautious investment philosophy, with significant cash reserves and minimal exposure to speculative assets. This approach contrasts with other industry leaders, such as Fred Thiel of MARA Holdings, who advocates for a Strategic Bitcoin Reserve, and John Deaton, who has outlined plans for a White House Crypto Council.

While Berkshire’s increased stake in Nu Holdings does not mark a direct embrace of cryptocurrencies, it reflects the growing integration of digital assets into traditional finance, even among traditionally conservative institutions.

Kostadin Dimitrov