Stunning $250M Profit: Warren Buffett's Berkshire Hathaway Exits Crypto-Friendly Nubank

The investment world is buzzing following a significant move by legendary investor Warren Buffett. His conglomerate, Berkshire Hathaway, has completely divested its stake in the Brazilian digital bank, Nubank. This exit is particularly noteworthy given Nubank’s prominent position as a crypto-friendly institution in Latin America. Despite his long-standing skepticism towards cryptocurrencies, Buffett’s Berkshire Hathaway has earned a substantial profit from this investment.

Warren Buffett’s Profitable Exit from Nubank

Recent filings with the U.S. Securities and Exchange Commission (SEC) confirm that Berkshire Hathaway has liquidated its entire position in Nu Holdings, the parent company of Nubank. This marks the end of an investment that began years ago and has now concluded with a considerable gain for Buffett’s firm.

The divestment process occurred in stages:

Approximately 20.7 million shares were sold in Q3 2024 at an average price of $13.46.
An additional 46.3 million shares were sold in Q4 2024 at an average price of $13.22.
The final 40.2 million shares were sold in Q1 2025 at an average price of $11.83.

These transactions resulted in a total profit estimated at around $250 million from the initial investment in Nu Holdings.

Why Did Berkshire Hathaway Sell Nubank Shares?

Interestingly, the decision to sell appears unrelated to Nubank’s performance. Nu Holdings has reported strong financial results recently. In Q1 2025, the company saw a net income of $557.2 million, a significant increase year-over-year. Their 2024 annual net income also showed robust growth, reaching $1.972 billion.

Instead, Buffett’s exit from Nubank aligns with Berkshire Hathaway’s broader strategy, particularly its pullback from traditional financial stocks. In Q1 2025, Berkshire also exited its position in Citigroup and reduced its holding in Bank of America, offloading over $2.1 billion in shares from these two institutions alone. These moves have significantly boosted Berkshire’s cash reserves, which now stand at a record $347.8 billion, with a large portion held in short-term U.S. Treasurys.

Nubank’s Crypto-Friendly Stance

Nubank has been a notable player in the digital banking space for its embrace of cryptocurrency. The platform allows users in Brazil to trade major cryptocurrencies like Bitcoin (BTC), Ether (ETH), and XRP directly within its app. In 2022, Nubank even allocated 1% of its net assets to Bitcoin, giving Berkshire Hathaway indirect exposure to the asset, despite Warren Buffett’s historical criticism of cryptocurrency.

Key Takeaways

This event highlights several important points:

Berkshire Hathaway made a substantial profit from its Nubank investment despite Buffett’s crypto skepticism.
The divestment was likely part of a larger strategy to reduce exposure to financial stocks and increase cash reserves.
Nubank continues to perform well financially, indicating the sale wasn’t performance-driven.
The move underscores the evolving landscape where traditional finance intersects with the crypto world.

Conclusion

Warren Buffett‘s Berkshire Hathaway has successfully exited its investment in the crypto-friendly bank, Nubank, realizing a significant $250 million profit. This move appears to be part of a strategic shift away from certain financial stocks and towards building up cash reserves, rather than a reaction to Nubank’s performance. It serves as a reminder that even investors known for caution are navigating a market where traditional and digital finance converge.