Bitcoin Skeptic Warren Buffett’s Own Company Profits from Bitcoin Investments

Warren Buffett, CEO of Berkshire Hathaway, has expressed skepticism, calling Bitcoin delusion
Revealed to have invested $750M in a Fintech company

Warren Buffett, the Oracle of Omaha and CEO of Berkshire Hathaway, is also well-known as a Bitcoin skeptic. Despite his vigorous criticism of cryptocurrencies over time, his company has significantly profited from cryptocurrency investments.

According to the blockchain-focused media outlet BeinCrypto, Berkshire Hathaway made a substantial investment in 2021 in the Brazilian fintech company Nu Holdings, which launched the cryptocurrency trading platform NuCrypt.

Before its IPO, Berkshire invested $500 million in NuBank, a part of Nu Holdings, and after the IPO, it invested an additional $250 million, bringing the total investment to $750 million.

If Berkshire had not sold any shares after the end of the second quarter, the value of this position would now be $840 million.

Earlier this year, NuBank launched its altcoin, NuCoin, further propelling its cryptocurrency ventures. With the stock price soaring by over 100%, NuBank’s market performance has outshined other major holdings in Buffett’s portfolio.

This strategic investment reflects the potential for change in the market as even traditional investors recognize the growing influence of cryptocurrencies. With Bitcoin’s recent surge outperforming significant indexes, there’s increased interest in Buffett’s investment strategy, known for his skepticism towards Bitcoin.

Buffett criticized Bitcoin in a 2019 CNBC interview, calling it ‘delusional’ and ‘attractive to charlatans.’ He added, “The world’s largest cryptocurrency, Bitcoin, has no unique value.”

He had previously depreciated Bitcoin, suggesting it might be rat poison squared. He also predicted that investing in cryptocurrencies would “come to a bad ending.”

Why does Warren Buffett have such disdain for cryptocurrencies?

Buffett considers Bitcoin a ‘non-productive asset.’ He prefers company stocks that generate value and cash flow from production.

Indeed, despite claims of providing real value, Bitcoin’s practical utility remains very limited.

Moreover, he believes cryptocurrencies do not meet the common definition of money as a medium of exchange or a store of value.

Meanwhile, Buffett is known to have made solid investments in other areas.

Over six years, Buffett acquired $36 billion worth of Apple shares. The stake is now valued at $160 billion, and he receives an annual dividend of $775 million from Apple.

Buffett’s portfolio includes Bank of America, American Express credit card company press, and the beverage giant Coca-Cola.

Buffett’s wealth is currently estimated at $109 billion.