Warren Buffett exits crypto-friendly Nubank holdings, netting $250M profit

Warren Buffett’s Berkshire Hathaway has fully exited its position in Nu Holdings, the parent company of the crypto-friendly Nubank, resulting in a $250 million profit. This divestment, confirmed by a May 15th SEC filing, concludes a process begun in 2024. Berkshire sold its 40.2 million Nubank shares in three tranches, averaging $13.46, $13.22, and $11.83 per share respectively.

Interestingly, this decision wasn’t driven by Nu Holdings’ performance. The company reported record profits in 2024 ($1.972 billion net income, a 91% year-over-year increase) and continued strong growth in Q1 2025 ($557.2 million net income, a 47% increase). This suggests Buffett’s exit aligns with Berkshire’s broader strategic shift.

Berkshire is simultaneously reducing its exposure to the financial sector. In Q1 2025, it offloaded shares in Citigroup and Bank of America, totaling over $2.1 billion. These actions have significantly increased Berkshire’s cash reserves to a record $347.8 billion, with a substantial portion held in short-term US Treasuries.

Nubank’s embrace of crypto services, including direct Bitcoin, Ether, and XRP trading within its app, is noteworthy. In 2022, Nubank allocated 1% of its net assets to Bitcoin, creating an indirect Bitcoin exposure for Berkshire despite Buffett’s well-known skepticism towards cryptocurrencies.

The substantial profit from the Nubank divestment underscores Berkshire’s shrewd investment strategy. However, the decision reflects a broader corporate strategy shift toward increased cash reserves and reduced financial sector holdings rather than a negative assessment of Nubank’s financial health or the cryptocurrency market. The move highlights the ongoing complexities and evolving landscape of investment strategies in the face of macroeconomic and technological change. It’s crucial to remember that all investment decisions involve risk, and independent research is essential before making any investment.