Warren Buffett has been clear about his dislike for cryptocurrencies. Yet Berkshire Hathaway has invested millions of dollars in a Brazilian bank with ties to cryptocurrencies, Nu Holdings Ltd., whose stock is up 34% year-over-year.
Berkshire Hathaway CEO and Chairman Warren Buffett has repeatedly made his stance on cryptocurrencies clear: He doesn’t like them.
At the 2018 Berkshire Hathaway Annual Meeting, Buffett called Bitcoin “probably rat poison squared.”
"We don't own any cryptocurrencies, we don't short any cryptocurrencies, and we will never own them."
"As far as cryptocurrencies are concerned, I can almost say with certainty that they will end badly," Buffett said in an interview with CNBC in 2018.
But recent reports suggest that Berkshire Hathaway and some of its investment managers may have become more relaxed about cryptocurrencies.
Berkshire Hathaway has invested in Nu Holdings, a Brazilian digital banking company that has its own cryptocurrency platform and supports the cryptocurrency market.
According to Nu's company information, Berkshire Hathaway initially participated in a $500 million Series G round in 2021 and later invested another $250 million.
In 2022, Nu launched its cryptocurrency platform, Nubank Cripto, initially supporting Bitcoin, Ethereum, and Polygon. The platform now includes Uniswap and Chainlink, and allows users to send, receive, and exchange cryptocurrencies.
Nu Holdings did not immediately respond to Fortune's request for comment.
According to SEC filings, Berkshire Hathaway increased its stake in Nu from 0.1% at the end of the fourth quarter of 2022 to 0.4% in the third quarter of fiscal 2024.
Representatives for Berkshire Hathaway and Buffett did not immediately respond to Fortune's request for comment.
This means that as of the end of the third quarter of fiscal 2024, Berkshire Hathaway held more than 86 million shares of Nu, worth nearly $1.2 billion. So Buffett and Berkshire Hathaway are benefiting from a business he once claimed not to understand.
“I’ve gotten into a lot of trouble for things I thought I understood,” Buffett told CNBC in 2018. “Why would I go long or short on something I don’t understand at all?”
As of midday Wednesday, Nu Holdings’ stock price was up nearly 34% year-over-year.
Now that Berkshire Hathaway appears to be making cryptocurrency-related investments, Buffett may need to reword his previous comments about cryptocurrencies not having an impact.
“If you told me you had all the Bitcoin in the world and offered to sell it to me for $25, I wouldn’t take it, because what would I do with it?” Buffett said at the 2022 Berkshire Hathaway shareholder meeting. "I've got to sell it back to you, anyway. It won't do anything."
Nevertheless, it's important to note that Berkshire Hathaway is generally conservative in its investment strategy.
According to the company's fourth-quarter 2024 financial statements, Berkshire Hathaway holds more than $325 billion in cash and equivalents, most of which are U.S. Treasuries. This means that Berkshire Hathaway also avoids investing heavily in hot stocks when the market is on a streak of success.
“Berkshire has been successful over the years precisely because it has been boring at this point,” Maye Shields, managing director of boutique investment bank Keefe, Bruyette & Woods, told Fortune’s Alena Botros in a November 2024 interview.
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