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 Buffett’s bet on crypto-friendly Nubank has put Berkshire Hathaway $130 million in profit already this year.
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<div class="cointelegraph">
 <p>Warren Buffett may still view cryptocurrencies and Bitcoin (BTC) as “rat poison squared,” but he is generating big profits from his position in a crypto-friendly bank in 2023.</p>
 <h2 id="warren-buffett-s-crypto-bet-up-130-million-in-2023">Warren Buffett’s “crypto bet” up $130 million in 2023</h2>
 <p>The “Oracle of Omaha” purchased 107 million shares of Nu Holdings, a Brazil-based fintech company and owner of the crypto-friendly Nubank, via his firm, Berkshire Hathaway, in two separate rounds in 2021.</p>
 <p>Berkshire invested $500 million in Nu Holdings in June 2021 and raised its stake by another $250 million in December 2021. The firm has not sold a single share since, according to its second quarter 2023 earnings report.</p>
 <p>Nu’s share 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 has still not sold any of its Nu shares. However, at its peak in February 2022, the position was worth&nbsp;over $1 billion.</p>
 <figure><img src="https://cdn.thebittimes.com/images/2023/10/31/84ae921c0064fd7a544714068e2bf84f.webp" alt="" title="">
  <figcaption style="text-align: center;"><em>Nu daily price chart. Source: TradingView</em>
  </figcaption>
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 <h2 id="why-is-nubank-crypto-friendly">Why is Nubank crypto-friendly?</h2>
 <p>Nubank has been dubbed crypto-friendly because some of its divisions offer crypto-related services to over 1.35 million users. Therefore, investing in Nubank can be seen as having indirect exposure to the cryptocurrency industry.&nbsp;</p>
 <p>That 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) trading. Nubank also&nbsp;launched a loyalty token on the Polygon blockchain.</p>
 <p>Moreover, Nu Holdings&nbsp;allocated 1% of its cash holdings to Bitcoin in May 2022.</p>
 <p>“This move reinforces the company’s conviction in Bitcoin’s current and future potential in disrupting financial services in the region,” Nubank stated at the time.&nbsp;</p>
 <p>Nubank is the largest fintech bank in Latin America, with over 80 million customers in Brazil.</p>
 <h2 id="nu-crushes-apple-and-amazon-stocks">Nu crushes Apple and Amazon stocks</h2>
 <p>Underperforming Nu <a rel="noopener noreferrer nofollow" title="stock" href="https://thebittimes.com/tag/stock.html">stock</a>s are Buffett’s other top holdings, Amazon and Apple, which have gained 54.65% and 36%, respectively. Apple is by far the biggest holding of Berkshire Hathaway, comprising roughly 45% of its $354 billion investment portfolio as of September 2023.</p>
 <p><strong><em>Related: Bitcoin continues to outperform Warren Buffett’s portfolio, and the gap is set to widen</em></strong></p>
 <p>Nu has also outperformed Berkshire Hathaway’s <a rel="noopener noreferrer nofollow" title="stock" href="https://thebittimes.com/tag/stock.html">stock</a>, which has risen 9.25% YTD.</p>
 <figure><img src="https://cdn.thebittimes.com/images/2023/10/31/4a0dcae9bd0727c75920651ecd250b3e.webp" alt="" title="">
  <figcaption style="text-align: center;"><em>Nu vs. Amazon, Apple and Berkshire Hathaway YTD performance chart. Source: TradingView</em>
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 </figure>
 <h2 id="bitcoin-price-performance-catches-up-with-nu-stock">Bitcoin price performance catches up with Nu stock</h2>
 <p>Nevertheless, Bitcoin has finally caught up to the price performance of Nu <a rel="noopener noreferrer nofollow" title="stock" href="https://thebittimes.com/tag/stock.html">stock</a> this year. In fact, BTC price is now also up 106% YTD amid “Uptober” and recent&nbsp;Bitcoin ETF euphoria.</p>
 <figure><img src="https://cdn.thebittimes.com/images/2023/10/31/153ce4e9d558c6d9f118c7c676a503e7.webp" alt="" title="">
  <figcaption style="text-align: center;"><em>Nu vs. BTC/USD YTD performance chart. Source: TradingView</em>
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 </figure>
 <p>Interestingly, Bitcoin’s rapid rise to catch up with Nu over the past weeks has coincided with BTC decoupling from the <a rel="noopener noreferrer nofollow" title="stock" href="https://thebittimes.com/tag/stock.html">stock</a> market&nbsp;in October.</p>
 <p>But while this is generally seen as a bullish sign, some commentators argue that&nbsp;Bitcoin ETF “hopium” is the driver of BTC price gains presently.</p>
 <blockquote class="twitter-tweet">
  <p lang="en" dir="ltr">Indeed. Lots of historical data that shows bitcoin is tightly correlated to the <a rel="noopener noreferrer nofollow" title="stock" href="https://thebittimes.com/tag/stock.html">stock</a> market. The recent “decoupling” is driven imo by hopium over the ETF. But a significant downturn in <a rel="noopener noreferrer nofollow" title="stock" href="https://thebittimes.com/tag/stock.html">stock</a>s will bring BTC back to earth. pic.twitter.com/5hk523j3Gp</p>— Joe Carlasare (@JoeCarlasare) October 26, 2023
 </blockquote>
 <p class="post-content__disclaimer">This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.</p>
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<p>Source: <a rel="noopener noreferrer nofollow" target="_blank" href="https://thebittimes.com/warren-buffett-s-crypto-stock-beats-apple-and-amazon-but-not-bitcoin-tbt68502.html">https://thebittimes.com/warren-buffett-s-crypto-stock-beats-apple-and-amazon-but-not-bitcoin-tbt68502.html</a></p>

Warren Buffett’s ‘crypto stock’ beats Apple and Amazon — but not Bitcoin

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