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 report 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 recognized for his skepticism towards cryptocurrencies, has absolutely exited his place in certainly one of Latin America’s most crypto-friendly banks, Nubank, earlier than his departure from Berkshire Hathaway.
Berkshire earns $250 million from crypto investments
A Might 15 submitting with the US Securities and Trade Fee (SEC) confirmed that Berkshire has utterly liquidated its positions in Nubank’s mother or father 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 median value of $13.46 per share, in keeping with information useful resource Inventory Circle.
Within the fourth quarter, it offered a further 46.3 million shares at a median value of $13.22. The ultimate tranche of 40.2 million shares was offered within the first quarter of 2025 at a median value of $11.83.
These transactions culminated in a complete acquire of roughly $250 million from the preliminary funding.
NU doing nicely with out Buffett
Buffett’s divestment from Nu Holdings additional follows the latter’s spectacular earnings in current quarters.
In Q1 2025, the agency reported a internet revenue of $557.2 million, marking a 47% improve in comparison with the identical quarter within the earlier 12 months. Adjusted internet revenue reached $606.5 million, reflecting a 37% year-over-year development.
In 2024, Nu Holdings achieved an annual internet revenue of $1.972 billion, representing a 91% improve from 2023, indicating that Berkshire’s resolution to liquidate NU shares totally was not about its efficiency.
Buffett’s exit aligns relatively 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 money reserves to a report $347.8 billion, with $305.5 billion in short-term US Treasurys.
Nubank has been among the many most energetic digital banks embracing crypto companies in Brazil, providing buying and selling in Bitcoin (BTC), Ether (ETH), XRP (XRP), and different high cryptocurrencies immediately by its app.
Associated: Berkshire-backed Nubank provides ADA, NEAR, ATOM to crypto choices
In 2022, the neobank allotted 1% of its internet property 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 comprise funding recommendation or suggestions. Each funding and buying and selling transfer entails threat, and readers ought to conduct their very own analysis when making a call.
