Buffett inadvertently invested in Bitcoin

Written by Bary Rahma, BeInCrypto Translation: Good Oba, Golden Finance

• Warren Buffett has benefited indirectly from Bitcoin by investing in Nubank, a digital bank that facilitates cryptocurrency trading
• Despite previous skepticism, Buffett’s indirect foray into cryptocurrency through Nubank boosted Berkshire’s finances
• Nubank’s success underscores the possibility of traditional finance and cryptocurrencies finding common ground

Warren Buffett, often hailed as the prophet of Omaha, has made no secret of his opposition to Bitcoin. He has viewed Bitcoin and other cryptocurrencies as “gambling tokens,” arguing that they have no intrinsic value. But Buffett’s indirect entry into the cryptocurrency industry by investing in Nubank has led to a trend that seems to be shifting.

Warren Buffett’s indirect Bitcoin investment pays off

In 2021, ahead of Nubank’s initial public offering (IPO), Warren Buffett’s Berkshire Hathaway invested $500 million in the Brazil-based digital bank. The fintech giant offers traditional banking services and allows customers to trade Bitcoin and other cryptocurrencies. Following the IPO, Berkshire Hathaway invested a further $250 million in Nubank, bringing the total investment to $750 million. The value of the position is currently $840 million, provided Berkshire has not bought or sold any shares since the end of the second quarter.

Nubank launched its own token, Nucoin, earlier this year, to further penetrate the cryptocurrency industry. The move has been a huge success. With its share price up more than 100 percent this year, Nubank’s market outperformed other heavyweights in Buffett’s portfolio, including giants like Amazon, Apple, Coca-Cola, Bank of America and Kraft Heinz.

** Amid the turmoil in global financial markets, it is ironic that Buffett has indirectly ventured into the cryptocurrency space through Nubank. The investment boosted Berkshire Hathaway’s finances amid a potential $17.7 trillion financial earthquake, demonstrating a subtle shift in the way traditional investors interact with the cryptocurrency industry.

Buffett’s indirect involvement echoes the general trend of traditional finance and cryptocurrencies finding common ground. Despite his public criticism, Nubank’s performance underscores the reality that even the most staunch critics cannot ignore the financial potential that is intertwined with the cryptocurrency space.

For example, senior hedge fund manager Paul Tud Jones believes that given the challenges of the current political environment in the United States, bitcoin and gold may account for a larger than usual proportion of the portfolio.