Warren Buffett’s “crypto bet” up $130 million in 2023

Warren Buffett's 'crypto stock' outperforms Apple and Amazon, but still falls behind Bitcoin

Warren Buffett’s ‘crypto stock’ outperforms Apple and Amazon, but not Bitcoin.

Warren Buffett, the legendary investor known as the “Oracle of Omaha,” may still think cryptocurrencies and Bitcoin (BTC) are “rat poison squared,” but that hasn’t stopped him from raking in massive profits from his crypto-friendly investment. In 2023 alone, Buffett’s “crypto bet” has surged by a whopping $130 million!

So, how did Buffett achieve this remarkable feat? It all started when his firm, Berkshire Hathaway, purchased a staggering 107 million shares of Nu Holdings, a Brazil-based fintech company and the proud owner of the crypto-friendly Nubank. The investment amounted to a cool $750 million, and Buffett hasn’t sold a single share since then. Talk about staying committed!

As of today, Nu’s share price has skyrocketed by nearly 106% year-to-date, which means Buffett’s initial investment is now worth around $879.50 million. That’s almost $130 million in profit! However, at its peak in February 2022, this “crypto bet” was worth over $1 billion. Now that’s what I call a crypto rollercoaster!

Why is Nubank crypto-friendly?

Nubank has earned its reputation as a crypto-friendly institution, thanks to its divisions that offer crypto-related services to over 1.35 million users. By investing in Nubank, Buffett has gained indirect exposure to the thrilling world of cryptocurrencies, which is no small feat!

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One of Nubank’s divisions, called Easynvest, offers a Bitcoin exchange-traded fund (ETF) product. Imagine it as the stock market for Bitcoin enthusiasts. On top of that, Nubank itself, a digital financial services platform with millions of customers, provides BTC and Ether (ETH) trading. It’s like having a flea market for crypto!

But wait, there’s more! Nubank even launched its very own loyalty token on the Polygon blockchain. Talk about getting creative with cryptocurrencies! And if that’s not enough to impress you, let’s not forget that Nubank allocated 1% of its cash holdings to Bitcoin in May 2022. That’s quite a leap of faith in the disruptive power of crypto!

Nu crushes Apple and Amazon stocks

While Warren Buffett’s crypto bet has been on a wild ride, his other top holdings, namely Amazon and Apple, have taken a back seat. Nu Holdings has outperformed both tech giants, with Amazon gaining 54.65% and Apple 36% thus far. Apple is still Berkshire Hathaway’s largest holding, accounting for around 45% of its $354 billion investment portfolio as of September 2023.

And it doesn’t stop there. Nu has even outperformed Berkshire Hathaway’s stock, which has only seen a modest 9.25% increase in value year-to-date. Buffett must be rethinking his strategy these days!

Bitcoin price performance catches up with Nu stock

In a surprising twist of fate, Bitcoin has finally caught up with the price performance of Nu stock. This year alone, BTC’s price has surged by 106%, leading to a remarkable match with Nu’s exceptional growth.

It’s worth noting that Bitcoin’s rapid rise to catch up with Nu coincided with its decoupling from the stock market in October. Bitcoin seems to be dancing to its own tune these days, and investors are loving it!

But hold your horses, because some commentators argue that Bitcoin’s ETF “hopium” is currently driving its price gains. It’s like Bitcoin is floating on a cloud of optimism, fueled by the prospect of mainstream adoption through ETFs. Can you blame them?

Now, dear readers, with Warren Buffett’s successful crypto bet and Bitcoin’s impressive performance, the world of digital assets is more thrilling than ever. Are you ready to join the excitement? Let us know your thoughts in the comments below!

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