Berkshire Hathaway, backed by Warren Buffet, has made immense money out of its venture in crypto firms. However, the profit comes despite Buffet’s open criticism of crypto. A report published by Bazenga shows that Berkshire’s highest income in the past year came from its crypto holdings only.

Warren Buffet’s Anti-Crypto Stance

Warren Buffett, a well-known opponent of Bitcoin, never misses a chance to voice his disapproval of the cryptocurrency sector. Buffet has a very unfavorable attitude and has refused to purchase Bitcoin, even on the days when its price was $15,000 in 2018.

In 2018, Buffet expressed his expectation of a calamity, saying, “In terms of cryptocurrencies, generally, I can say with almost certainty that they will come to a bad ending.”

Berkshire Hathaway Crypto Venture

Though his distastes are well known, Buffet’s Berkshire Hathaway has a different strategy. We are discussing Nu Holdings, Inc. (NYSE: NU). Buffet or one of his advisors boosted the money invested in Nubank, the top Latin American digital bank, from $500 million to $1 billion in 2021. In 2023, the investment showed the best returns.

Nucripto is one of several cutting-edge goods; it was introduced in 2022 and allows users to trade in numerous cryptocurrencies, including Ethereum and Bitcoin. Nucripto garnered over a million active users in just its first month of existence.

The competitive advantage of Nubank is emphasized by this strategic placement, which also demonstrates Berkshire Hathaway’s vision in seeing the potential of cryptocurrencies and digital banking services to revolutionize the financial sector.

Although Nubank’s main source of income is still from traditional financial products, its entry into the cryptocurrency field positions it as a major participant in the digital currency industry in Latin America. Its increasing power in the area is demonstrated by the launch of its cryptocurrency, Nucoin, as well as the incorporation of cryptocurrencies like Polkadot and Avalanche.

Berkshire Hathaway Previous Profit

Previously, Berkshire Hathaway Inc. posted its second consecutive year of record annual profit, per a Reuters report. Gains from common stock investments and more income from its insurance business allowed for this. Increasing interest rates also contributed to the company’s gains. Operating profit for the business climbed by 28% to $8.48 billion in the fourth quarter.

Read Also: Fed Chair Jerome Powell Discounts Recession Risks, Implication For Crypto

The post Berkshire Hathaway Rakes in Crypto Money, Despite Warren Buffet’s Resistance appeared first on CoinGape.

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Filed under: News - @ January 1, 1970 12:00 am