Warren Buffett’s ‘crypto bet’ up $130 million in 2023
The “Oracle of Omaha” purchased 107 million shares of Nu Holdings, a Brazil-based fintech company and owner of crypto-friendly Nubank, through his company Berkshire Hathaway, in two separate rounds in 2021.
Berkshire invested $500 million in Nu Holdings in June 2021 and increased its stake by an additional $250 million in December 2021. The company has not sold any shares since, according to to its second quarter 2023 earnings report.
The Nu stock price is currently up nearly 106% year to date (YTD), meaning Buffett’s $750 million position is now worth around $879.50 million, assuming Berkshire still hasn’t sold any of its Nu shares. However, at its peak in February 2022, the position was worth more than a billion dollars.
Why is Nubank crypto friendly?
Nubank has been called crypto-friendly because some of its divisions offer crypto-related services to over 1.35 million users. Therefore, investing in Nubank can be considered to have indirect exposure to the cryptocurrency sector.
This includes Easynvest, a trading platform that offers a Bitcoin exchange-traded fund (ETF) product, and Nubank, a digital financial services platform that offers BTC and Ether (ETH) trade. Nubank also launched a loyalty token on the Polygon blockchain.
“This move reinforces the company’s belief in Bitcoin’s current and future potential to disrupt financial services in the region,” Nubank said at the time.
Nubank is the largest fintech bank in Latin America, with more than 80 million customers in Brazil.
Nu crushes Apple and Amazon stocks
Underperforming Nu stocks were Buffett’s other top holdings, Amazon and Apple, which gained 54.65% and 36%, respectively. Apple is Berkshire Hathaway’s largest holding by far, accounting for approximately 45% of its $354 billion investment portfolio as of September 2023.
Nu has also outperformed Berkshire Hathaway’s stock, which is up 9.25% year to date.
Bitcoin price performance catches up with Nu stock
Interestingly, Bitcoin’s rapid rise to catch up with Nu over the past few weeks has coincided with BTC. stock market decoupling in October.
But while this is generally considered a bullish sign, some commentators claim that Bitcoin ETF “hopium” is currently the driving force behind the BTC price rise.
Indeed. Extensive historical data shows that Bitcoin is closely tied to the stock market. The recent “decoupling” is motivated, in my opinion, by the hope that the ETF generates. But a significant drop in stocks will bring BTC back down to earth. pic.twitter.com/5hk523j3Gp
– Joe Carlasare (@JoeCarlasare) October 26, 2023