How Warren Buffett Profits From Bitcoin, Crypto

Warren Buffett, a staunch critic of Bitcoin and crypto, is indirectly reaping the benefits of an asset class he has often dismissed.

Despite well-founded skepticism, Buffett's investment conglomerate Berkshire Hathaway is reaping huge profits from its stake in a company operating in the crypto market.

How Warren Buffett Turns Crypto into Profits

Berkshire Hathaway, led by Buffett, has long championed the value of investing in companies with strong cash flows and strong business models. This approach has helped the company navigate market fluctuations with remarkable resilience.

Yet, Buffett's disdain for Bitcoin and crypto became a consistent theme in a 2018 interview, saying that cryptocurrencies essentially produce nothing, and their value depends only on the next person's willingness to pay a higher price.

“If you told me you owned all the bitcoins in the world and offered it to me for $25, I wouldn't take it because what am I going to do? I was going to sell it back to you one way or another. It's not going to do anything,” Buffett said.

However, Berkshire Hathaway's investment strategy shows a murky approach to the crypto market. The company has made a significant investment in New Holdings. This Brazilian fintech company launched NuCrypto, a platform for trading cryptocurrencies, in 2022.

Despite Buffett's personal stance, his company's move into an entity embracing cryptocurrency shows recognition of the sector's potential profitability.

Nu Holdings has been an outstanding performer in Berkshire Hathaway's portfolio. In the year After an initial investment of $500 million in 2021, followed by an additional $250 million, the company saw its value soar, with its share price rising by nearly 50% in 2024. This performance comes on the back of an impressive run in 2023, which marked a 100% increase in share price.

This strategic investment reflects the potential shift in markets and even traditional investors recognize the growing impact of digital currencies. In the year Bitcoin's stellar performance in 2024 will add further focus to Buffett's investment strategy to outperform major indices going forward.

Read more: Bitcoin price prediction for 2024/2025/2030

While Buffett's personal feelings about Bitcoin and cryptocurrencies remain unchanged, the financial success of crypto-related ventures in Berkshire Hathaway's portfolio may cause him to reassess his stance.