"Warren Buffett Sells Nubank Holdings, Profits $250M - CoinTelegraph"

Warren Buffett Sells Crypto-Friendly Nubank Holdings for $250M Profit

Warren Buffett, the renowned investor with a history of skepticism towards cryptocurrencies, has made headlines by exiting his position in Nubank, one of Latin America's most crypto-friendly banks, just before leaving Berkshire Hathaway.

Berkshire Hathaway Earns $250 Million from Crypto Investments

According to a recent filing with the US Securities and Exchange Commission (SEC), Berkshire Hathaway has sold off all its shares in Nubank's parent company, Nu Holdings, resulting in a profit of $250 million from the initial investment.

The divestment process began in 2024, with Berkshire liquidating its 40.2 million Nubank shares over several quarters at varying prices. Despite Nu Holdings posting record profits in 2024 and Q1 2025, Buffett decided to pull out completely from the investment.

Nu Holdings Thrives Independently

While Buffett's exit may raise eyebrows, Nu Holdings has been thriving independently, showcasing impressive financial performance in recent years. In Q1 2025, the company reported a significant increase in net income, reaching $557.2 million. Additionally, its adjusted net income showed a 37% uptick year-over-year.

In 2024, Nu Holdings achieved an annual net income of $1.97 billion, marking a substantial 91% increase from the previous year. This robust financial performance indicates that Berkshire's decision to divest from the company was not influenced by its profitability.

Berkshire's Strategic Shift in the Financial Sector

Buffett's decision to exit Nubank aligns with Berkshire Hathaway's broader strategic shift away from the financial sector. The conglomerate has recently divested its holdings in Citigroup, reduced its stake in Bank of America, and amassed a record cash reserve of $347.8 billion, with a significant portion invested in short-term US Treasuries.

Despite Berkshire's withdrawal, Nubank continues to be a prominent player in the digital banking space in Brazil, offering a range of crypto services, including trading in Bitcoin, Ether, XRP, and other cryptocurrencies directly through its app.

In a bold move in 2022, Nubank allocated 1% of its net assets to Bitcoin, providing indirect exposure to the digital asset for investors, including Buffett, who has been critical of Bitcoin in the past, famously referring to it as "rat poison squared."

It is important to note that this article does not provide investment advice, and readers are encouraged to conduct their own research before making any financial decisions.