Warren Buffett-led American multinational conglomerate Berkshire Hathaway has increased its stake in Nu Holdings, a Brazilian digital banking company. This comes years after Warren Buffett declared that he would never invest in cryptocurrencies or the crypto-related sector. Berkshire Hathaway continues to maintain a cautious investment strategy as it increases its stake in Nu Holdings in the third quarter of 2024.
Expanding investment in Nu Holdings
According to the latest filing with the US Securities and Exchange Commission (SEC), Nu Holdings revealed that Berkshire Hathaway increased its stake in the company to 0.4% in the third quarter of fiscal 2024, up from the 0.1% reported in the fourth quarter ended December 31, 2022.
Berkshire Hathaway first invested $500 million in Nu Holdings in its Series G round in 2021. The company later invested an additional $250 million, bringing the total investment to $750 million. Currently, Berkshire Hathaway is estimated to hold more than 86 million shares of Nu Holdings, with a value of approximately $1.2 billion.
Warren Buffett’s Past Views on Crypto
Berkshire Hathaway CEO Warren Buffett has been strongly opposed to the cryptocurrency market. He has never considered himself a supporter of the sector and once called Bitcoin “probably rat poison double.” This statement was made in 2018, when he predicted that cryptocurrencies would “come to a bad ending.” At the time, Warren Buffett asserted that his company did not own any positions in the cryptocurrency market and would never invest in the sector.
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However, this stance appears to be changing as Berkshire Hathaway increases its investment in Nu Holdings, which is launching its Nubank Crypto platform in 2022. The platform supports cryptocurrencies such as Bitcoin, Ethereum, Polygon, Uniswap, and Chainlink, and provides key functions such as sending, receiving, and converting cryptocurrencies.
