Warren Buffett, known for his criticism of bitcoin and other cryptocurrencies, sees his investment firm Berkshire Hathaway profiting from the asset class he has often criticized. Despite its reservations, Berkshire Hathaway has made a significant investment in Nu Holdings, a Brazilian fintech company that launched a cryptocurrency trading platform called Nucripto in 2022. Could these surges change Warren Buffett’s views on crypto?
Buffett’s take on bitcoin and other cryptocurrencies
Buffett’s distaste for bitcoin is well documented. In a 2018 interview, he said that cryptocurrencies essentially produce nothing and that their value depends solely on someone else’s willingness to pay a higher price.
“If you told me you own all the bitcoin in the world and you offered it to me for $25, I wouldn’t take it, what would I do with it? I’d have to sell it back to you somehow. It’s not going to do anything,” Buffett said.
Financial success in the crypto sector for Warren Buffett
However, the financial success of the crypto-related companies within Berkshire Hathaway’s portfolio could provoke a reconsideration of its position. The investment in Nu Holdings has proven to be particularly fruitful.
Since its initial investment of $500 million in 2021, followed by an additional $250 million, the company’s share price has risen almost 50% in 2024 alone, after an impressive increase of almost 100% in 2023. With the price increases of crypto in 2024, and people’s increasing interest in investing in crypto, the stock has risen almost another 100% in 2024.
Berkshire Hathaway’s investment strategy
Berkshire Hathaway, led by Buffett, has always advocated investing in companies with strong cash flows and solid business models. Perhaps, partly due to these large increases in shares, Buffett will reconsider opening up more to cryptocurrencies.
Source: https://bitcoinmagazine.nl/nieuws/warren-buffett-verdient-aan-crypto
