Latest News: Warren Buffetts Berkshire Hathaway Invests in Bitcoin Friendly Digital Bank
Surprising fact: a $1 billion SEC filing revealed that a traditionally conservative U.S. firm held a major stake in a Brazil-based neobank that offered direct crypto trading.
Warren Buffett and his team first placed a $500 million pre-IPO bet in June 2021 and later disclosed a larger position in Nubank, signaling a notable shift in strategy.
Berkshire Hathaway then trimmed other tech and card network positions while showing exposure to a platform that lets users trade BTC, ETH and XRP and access a Bitcoin ETF through NuInvest.
The company fully exited the position by Q1 2025, realizing roughly $250 million in gains, even as Nubank posted record net income of $1.97 billion in 2024 and $557.2 million in Q1 2025.
This development framed a broader market question: how does a cautious investment firm engage with a crypto-enabled bank while managing portfolio discipline and regulatory risk?
Key Takeaways
- Berkshire Hathaway’s filing showed a sizable position in Nubank and a pre-IPO investment in 2021.
- Nubank expanded crypto access via NuInvest and direct trading of BTC, ETH, and XRP.
- The firm exited the stake by Q1 2025, realizing gains while trimming other card network exposure.
- Nubank reported strong results: record 2024 net income and robust Q1 2025 performance.
- The move highlighted a pragmatic approach to opportunity and risk in a shifting market.
Breaking Overview: Berkshire Hathaway’s crypto turn via Brazil’s Nubank
SEC filings revealed a multistage position that grew into a billion-dollar stake in Nubank over the past year. The move merged a cautious capital allocator with a fast-growing neobank that added crypto access to its app.
What happened: From SEC filings to billion-dollar stake disclosures
Filings show an initial $500 million pre-IPO commitment that expanded into roughly $1 billion of exposure. At the same time, the company reduced Visa and Mastercard holdings by more than $3 billion.
Why it matters: A crypto-friendly neobank amid U.S. retrenchment
Nubank added cryptocurrency trading and NuInvest gave clients a route to a Bitcoin ETF, creating indirect BTC access without a direct bet on tokens.
Context at a glance: Buffett’s skepticism vs. indirect Bitcoin exposure
“Bitcoin is rat poison squared,”
This quote from warren buffett sat alongside a pragmatic portfolio adjustment that let an investor tap digital services while managing risk in a shifting market and year of re-evaluation.
warren-buffetts-berkshire-hathaway-invests-in-bitcoin-friendly-digital-bank
The investment story blended a traditional capital approach with exposure to modern fintech services.
Initial and follow-on investments:
Initial and follow-on investments
The investor made a $500 million pre-IPO commitment in June 2021 that later surfaced as roughly a $1 billion position in SEC disclosures.
This sequence signaled growing conviction in a fast-scaling stock tied to a digital bank serving millions of users.
Nubank’s crypto services
The platform integrated in-app trading for Bitcoin, Ether and XRP, while NuInvest offered regulated access to a Bitcoin ETF.
That mix of direct trading and ETF access shaped the company’s product pitch and influenced how the investment thesis addressed crypto exposure.
In 2022 the company even allocated 1% of net assets to BTC, a concrete signal of balance sheet experimentation that attracted attention.
Strategic Latin America angle
Executives argued Latin America still has large underbanked populations and high legacy fees.
A low-cost neobank model aimed to capture market share by offering frictionless services and strong user onboarding.
Portfolio rebalancing signals
At the same time, the investor trimmed shares in major card networks by billions and redirected capital toward a bank-focused stock.
That repositioning reflected a view that digital financial services and crypto-enabled features could outpace legacy payments in this market.
From buy to exit: Berkshire’s divestment, NU’s strong results, and market signals
Berkshire’s share sales stretched from mid‑2024 into Q1 2025, closing a long debate about the firm’s exposure to a crypto‑forward bank. The divestment came in three tranches: 20.7 million shares in Q3 2024 at $13.46, 46.3 million in Q4 at $13.22, and the final 40.2 million in Q1 2025 at $11.83.
The sequence produced roughly $250 million in realized gains and coincided with NU reporting record 2024 net income of $1.97 billion (+91% YoY). Q1 2025 net income rose to $557.2 million (+47% YoY), with adjusted net income of $606.5 million (+37% YoY).
Broader repositioning and cash accumulation
The exit formed part of a wider portfolio shift: the company sold Citigroup exposure, trimmed Bank of America stakes by over $2.1 billion, and boosted cash to a record $347.8 billion, including $305.5 billion in short‑term U.S. Treasurys.
Crypto stance vs. pragmatic allocation
Despite public skepticism from Warren Buffett — who labeled cryptocurrency “rat poison squared” — the investor captured gains while keeping distance from direct token holdings.
The outcome: a case study in balancing innovation exposure through a regulated bank channel while controlling direct crypto risk. For a detailed timeline of the selloff, see this summary.
Conclusion
Conclusion
By Q1 2025 the stake was sold, yielding about $250 million and spotlighting how a traditional investor can profit from a crypto-enabled platform.
The round-trip shows a company can capture gains while a bank grows product reach. NU posted strong results through 2024 and Q1 2025 and kept expanding services that include in-app trading and ETF access.
For U.S. readers, this matters: regulated on-ramps let users access cryptocurrencies inside a familiar app. Latin America’s growth narrative made the move both strategic and scalable for the platform.
Ultimately, the case ties disciplined timing and rising cash reserves to cautious innovation exposure. Expect renewed interest in digital finance platforms as services evolve to bridge banking and crypto for retail users.
FAQ
What did Berkshire Hathaway do regarding Nubank and cryptocurrency exposure?
Berkshire Hathaway disclosed large holdings in Nubank, including initial pre-IPO and later stock positions that gave it indirect exposure to Nubank’s crypto services. The filings showed both early investments and follow-on purchases that stirred market interest in how legacy investors view fintech and crypto access in Latin America.
How much did Berkshire initially invest and what was revealed later?
Early reports cited a roughly 0 million pre-IPO commitment, with later disclosures indicating a stake worth about
FAQ
What did Berkshire Hathaway do regarding Nubank and cryptocurrency exposure?
Berkshire Hathaway disclosed large holdings in Nubank, including initial pre-IPO and later stock positions that gave it indirect exposure to Nubank’s crypto services. The filings showed both early investments and follow-on purchases that stirred market interest in how legacy investors view fintech and crypto access in Latin America.
How much did Berkshire initially invest and what was revealed later?
Early reports cited a roughly $500 million pre-IPO commitment, with later disclosures indicating a stake worth about $1 billion at certain points. Subsequent share sales reduced that position during 2024 and Q1 2025, producing realized gains for the firm.
What crypto services does Nubank offer that matter to investors?
Nubank provides retail trading in major cryptocurrencies such as Bitcoin and Ethereum, supports other tokens like XRP in some markets, and gives customers access to crypto-related funds and services through NuInvest, including ETFs tied to Bitcoin. Those features make Nubank attractive to investors seeking regulated crypto exposure via a consumer bank.
Why is this move significant for the U.S. financial sector and investors?
The investment highlighted a shift: major investors reallocating into fintech and crypto-friendly platforms while traditional U.S. banks face conservative regulation. It signals confidence in digital banking growth across Latin America and offers indirect cryptocurrency exposure without direct holdings of Bitcoin on balance sheets.
Did Berkshire fully exit the position, and what were the results?
During 2024 and into Q1 2025, Berkshire reduced and eventually exited much of its Nubank holding through share sales. Reports showed roughly $250 million in realized gains from these transactions, aligned with broader portfolio rebalancing activities.
How did Nubank perform financially amid this investment activity?
Nubank reported strong results, including record profitability in 2024 and net income growth in Q1 2025. Those fundamentals helped justify investor interest and positioned the company as a leading digital bank serving underserved Latin American markets.
How does this align with Warren Buffett and Charlie Munger’s public views on cryptocurrency?
Buffett and Munger have long criticized crypto, using blunt metaphors such as “rat poison squared.” The nubank investment illustrates a nuanced corporate strategy: making financial allocations through investment managers and subsidiaries while maintaining personal skepticism about cryptocurrencies themselves.
What broader portfolio moves accompanied the Nubank position?
Alongside Nubank activity, Berkshire trimmed positions in major U.S. banks like Citigroup and Bank of America and reduced stakes in Visa and Mastercard. The firm also held record levels of cash, indicating a tactical repositioning toward fintech and growth opportunities.
Could this signal more crypto-friendly investments from large institutional holders?
The Nubank case suggests institutions may pursue regulated, indirect crypto exposure via banks and investment platforms rather than direct cryptocurrency holdings. It points to growing institutional interest in fintech firms that bridge traditional finance and digital-asset services, particularly in high-growth regions like Latin America.
billion at certain points. Subsequent share sales reduced that position during 2024 and Q1 2025, producing realized gains for the firm.
What crypto services does Nubank offer that matter to investors?
Nubank provides retail trading in major cryptocurrencies such as Bitcoin and Ethereum, supports other tokens like XRP in some markets, and gives customers access to crypto-related funds and services through NuInvest, including ETFs tied to Bitcoin. Those features make Nubank attractive to investors seeking regulated crypto exposure via a consumer bank.
Why is this move significant for the U.S. financial sector and investors?
The investment highlighted a shift: major investors reallocating into fintech and crypto-friendly platforms while traditional U.S. banks face conservative regulation. It signals confidence in digital banking growth across Latin America and offers indirect cryptocurrency exposure without direct holdings of Bitcoin on balance sheets.
Did Berkshire fully exit the position, and what were the results?
During 2024 and into Q1 2025, Berkshire reduced and eventually exited much of its Nubank holding through share sales. Reports showed roughly 0 million in realized gains from these transactions, aligned with broader portfolio rebalancing activities.
How did Nubank perform financially amid this investment activity?
Nubank reported strong results, including record profitability in 2024 and net income growth in Q1 2025. Those fundamentals helped justify investor interest and positioned the company as a leading digital bank serving underserved Latin American markets.
How does this align with Warren Buffett and Charlie Munger’s public views on cryptocurrency?
Buffett and Munger have long criticized crypto, using blunt metaphors such as “rat poison squared.” The nubank investment illustrates a nuanced corporate strategy: making financial allocations through investment managers and subsidiaries while maintaining personal skepticism about cryptocurrencies themselves.
What broader portfolio moves accompanied the Nubank position?
Alongside Nubank activity, Berkshire trimmed positions in major U.S. banks like Citigroup and Bank of America and reduced stakes in Visa and Mastercard. The firm also held record levels of cash, indicating a tactical repositioning toward fintech and growth opportunities.
Could this signal more crypto-friendly investments from large institutional holders?
The Nubank case suggests institutions may pursue regulated, indirect crypto exposure via banks and investment platforms rather than direct cryptocurrency holdings. It points to growing institutional interest in fintech firms that bridge traditional finance and digital-asset services, particularly in high-growth regions like Latin America.
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