Buffett, who once called Bitcoin a 'rat poison', has invested $1.2 billion in crypto assets

Warren Buffett's negative attitude towards cryptocurrencies is well known. However, surprisingly, its subsidiary Berkshire Hathaway invested in cryptocurrency-related Brazilian digital bank Nu Holdings Ltd., whose stock has risen by as much as 34% annually.

Buffett has publicly expressed his doubts about cryptocurrencies many times, even compared them to "the square of rat poison." He made it clear that Berkshire Hathaway would not hold any cryptocurrency.

However, recent reports show that Berkshire Hathaway's investment strategy seems to have been adjusted. The company invests in Nu Holdings, a Brazilian bank that owns and operates its own cryptocurrency trading platform.

It is reported that Berkshire Hathaway participated in Nu Holdings' Series G financing in 2021, with an investment amount of US$250 million. Nu Holdings' cryptocurrency platform Nubank Cripto supports a variety of cryptocurrencies, including Bitcoin, Ethereum, etc.

Nu Holdings and Berkshire Hathaway have not commented on the matter.

As of the end of the third quarter of 2024, Berkshire Hathaway held more than 86 million shares of Nu, worth nearly US$1.2 billion. This shows that Buffett and his company are profiting from areas they were not optimistic about.

Buffett once said in 2018 that he would not invest in areas he did not understand. However, Nu Holdings' success seems to have left Buffett with a need to revisit his position on cryptocurrency.

He once said at the 2022 shareholders' meeting that even if he owns all the bitcoins, he would not buy them because it would be useless to him.

It is worth noting that Berkshire Hathaway's investment strategy is still relatively conservative overall. The company holds huge cash reserves, mainly investing in U.S. Treasury bonds, avoiding excessive pursuit of market hotspots.

Meyer Shelds, managing director of Keefe, Bruyette & Woods, pointed out that Berkshire Hathaway's success stems from its long-term stable investment strategy. This investment in Nu Holdings may reflect Berkshire Hathaway's limited exploration in emerging technology fields after carefully evaluating risks.

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