Warren Buffett: $250 Million Win With Bitcoin-Linked Company

Warren Buffett Generates $250 Million With Bitcoin-Linked Company – Despite His Dislike Of BTC

18 May 2025 at 10: 52

Reading time: 2 minutes

Investment legend Warren Buffet isn't exactly a fan of BitcoinHe once called the digital currency “rat poison squared.” But that didn’t stop him from investing in Brazil’s Nubank, a company that trades Bitcoin and has it on its balance sheet.

Last quarter, Buffet’s investment vehicle Berkshire Hathaway divested its shares in Nubank, resulting in an impressive $250 million profit.

Profit of 250 million dollars

In 2024, Berkshire began divesting its Nubank holdings. During the third quarter, the company sold 20,7 million shares at an average price of $13,46 each. In the fourth quarter, it sold another 46,3 million shares, this time at $13,22. The final tranche of 40,2 million shares was sold in the first quarter of 2025, at a price of $11,83.

The total profit on their initial investment is around 250 million dollars. Looking back, Berkshire can say with some satisfaction that the choice for this Bitcoin-related company has paid off.

Nubank is doing well without Buffet

Even without the support of Buffett and Berkshire Hathaway, Nubank continues to perform solidly. In the first quarter of 2025, the company posted net income of $557,2 million, up 47% from the same quarter in 2024. For the full year 2024, Nubank reported net annual income of $1,97 billion, up a whopping 91% from 2023.

Given these results, the decision to sell shares does not seem to stem from Nubank's performance itself, which is excellent. It seems more like a strategic choice within the financial sector, in which Buffet's investment company is withdrawing as a whole.

In the first quarter of 2025, Berkshire also sold shares in Citigroup and Bank of America, totaling $2,1 billion. This has pushed Berkshire's cash reserves to a record high of $347,8 million.

Frequently Asked Questions

Why did Berkshire Hathaway sell its shares in Nubank?
Berkshire Hathaway has chosen to sell its shares in Nubank as part of a broader strategic shift within the financial sector, not necessarily because of the company's performance.

How much profit did Berkshire Hathaway make on its investment in Nubank?
Berkshire Hathaway has made a profit of approximately $250 million on its initial investment in Nubank.

How is Nubank currently performing without Buffet as a shareholder?
Nubank reports strong results, with net profit of $557,2 million in the first quarter of 2025, up 47% year-on-year.

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