Warren Buffett’s $250 Million Exit from Nubank: What It Means for Crypto and Banking

Warren Buffett, the renowned investor often viewed as skeptical of cryptocurrencies, has made headlines by fully exiting his investment in Nubank, one of Latin America’s most notable digital banks. This move, completed in early 2025, raised eyebrows not only because of Buffett’s long-standing views on crypto but also due to the impressive performance of Nubank, which recorded remarkable profits in recent quarters.

Berkshire Earns $250 Million from Crypto Investments

On May 15, Berkshire Hathaway disclosed in a filing with the U.S. Securities and Exchange Commission (SEC) that it had completely divested its holdings in Nu Holdings, the parent company of Nubank. This decision marks the end of Berkshire’s relationship with Nubank, which began when the company invested in its shares in 2021.

Berkshire’s divestment strategy involved gradual sales over the past year, starting with approximately 20.7 million shares sold in the third quarter of 2024 at an average price of $13.46 per share. By the end of the fourth quarter, Berkshire sold an additional 46.3 million shares at a slightly lower average price of $13.22. The final tranche of 40.2 million shares was disposed of in the first quarter of 2025 at an average price of $11.83. Overall, these transactions led to a reported gain of around $250 million from its investment in Nubank.

NU Doing Well Without Buffett

Interestingly, Buffett’s withdrawal appears disconnected from Nubank’s financial performance. In Q1 2025, Nubank reported a net income of $557.2 million, reflecting a staggering 47% increase over the same period the previous year. When considering the full fiscal year of 2024, Nu Holdings achieved an exceptional annual net income of $1.972 billion, representing a 91% increase from the previous year. This impressive growth indicates that Berkshire’s decision to exit was not performance-related, but rather part of a larger strategy.

Buffett’s move reflects a broader trend at Berkshire Hathaway, where the company has trimmed its exposure in the financial sector significantly. In the same quarter, it also liquidated shares in Citigroup and reduced its position in Bank of America, totaling an exit worth over $2.1 billion. This pullback has resulted in Berkshire’s cash reserves ballooning to an unprecedented $347.8 billion, with $305.5 billion invested in short-term U.S. Treasuries.

The Future of Nubank and Cryptocurrency

Nubank has distinguished itself as a leader in embracing cryptocurrency services in Brazil, enabling users to trade major cryptocurrencies like Bitcoin (BTC), Ether (ETH), and XRP directly through its app. In 2022, Nubank even allocated 1% of its net assets to Bitcoin, providing Buffett with indirect exposure to the cryptocurrency, despite his historic skepticism, which he famously dubbed as “rat poison squared.”

This transition signals a potential shift in the banking landscape, as Nubank continues to innovate and expand its crypto offerings. In fact, Nubank has recently added new cryptocurrencies such as Cardano (ADA), Near (NEAR), and Cosmos (ATOM) to its list of available trading assets. This initiative enhances its appeal to younger, tech-savvy consumers who are increasingly turning to digital assets.

Conclusion

Warren Buffett’s complete exit from Nubank, earning Berkshire Hathaway $250 million, underscores a significant moment in both the traditional finance and cryptocurrency markets. While the divestment may reflect a strategic financial move rather than a judgment on Nubank’s performance, it certainly invites speculation about the future interplay between mainstream banking and digital currencies.

As Nubank forges ahead in the evolving crypto space, it remains to be seen how the departure of Berkshire will influence its future and whether other traditional investors will follow suit. Nevertheless, one thing is clear: the digital banking revolution is well underway, and institutions bent on adapting will likely remain at the forefront of this transformation.

For more insights on Berkshire Hathaway and its financial strategies, check out our articles on Berkshire Hathaway’s Investment Strategies and The Rise of Digital Banks. If you’re interested in cryptocurrency trends, explore our coverage on Cryptocurrency Market Developments.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.