How Warren Buffett Unexpectedly Made Millions on Bitcoin

Warren Buffett, often hailed as the Oracle of Omaha, has never shied away from expressing his skepticism about Bitcoin. He once questioned Bitcoin and other cryptos as “gambling tokens” with no intrinsic value.

However, the tide seems to be turning, albeit unwittingly, as Buffett's investment in NuBank will push him into the crypto industry.

Warren Buffett's Indirect Bitcoin Venture Fees

In the year In 2021, ahead of its initial public offering (IPO), Warren Buffett's Berkshire Hathaway invested $500 million in Nubank, a Brazil-based digital bank. This fintech innovation streamlines traditional banking services and allows customers to trade Bitcoin and other cryptos.

After the IPO, Berkshire Hathaway invested an additional $250 million in Nubank, bringing its total investment to $750 million. The position is worth $840 million today if Berkshire hasn't bought or sold any shares since the end of the second quarter.

Nubank jumped further into the crypto industry earlier this year by introducing altcoin NuCoin. The move was nothing short of a financial crescendo. With its stock up more than 100% this year, NuBank's market performance has eclipsed other heavyweight holdings in Buffett's portfolio. These include titans like Amazon, Apple, Coca-Cola, Bank of America and Kraft Heinz.

Read more: 9 Best Bitcoin Exchanges and Platforms in 2023

As global financial markets navigate turbulent waters, Buffett's indirect connection to crypto via NewBank is ironic. This investment boosted Berkshire Hathaway's financial position amid a $17.7 trillion market cap. Thus marking a unique shift in how traditional investors interact with the crypto industry.

Buffett's unwitting finding of a convergence point between traditional finance and crypto echoes a broader narrative. Despite vocal criticism, Nubank's performance underscores the fact that even the staunchest critics cannot ignore the financial potential associated with the crypto domain.

For example, Paul Tudor Jones, a veteran hedge fund manager, said that given the current challenging US political climate, bitcoin and gold may occupy a larger portion of a portfolio than usual.

“I like gold and bitcoin together. I think you probably hold a larger percentage of your portfolio than you do historically because here in the United States we're going through both challenging political times and going through — obviously we have. The geopolitical situation,” Jones said.

Read more: How to buy Bitcoin (BTC) and everything you need to know

While Buffett's stance on bitcoin remains unchanged, to the extent that he calls it “rat poison,” his indirect involvement through NuBank's rich venture is a telling narrative of investment volatility in the modern financial age.