Berkshire Hathaway, backed by Warren Buffett, is making huge profits from its venture into crypto companies. But the gains came despite Buffett's public criticism of cryptocurrencies. According to a report published by Bazenga, Berkshire's highest revenue over the past year came solely from its crypto holdings.
Warren Buffett's anti-cryptocurrency stance
Warren Buffett, a well-known Bitcoin opponent, never misses an opportunity to express his disapproval of the crypto sector. Mr. Buffet has such an unfavorable attitude that he refused to buy Bitcoin even on a day in 2018 when the price was $15,000.
In 2018, Buffet predicted disaster: “When it comes to cryptocurrencies, in general, you can almost certainly say it's going to end badly.”
Berkshire Hathaway's crypto venture
Although his antics are well known, Mr. Buffet's Berkshire Hathaway has a different strategy. We're discussing Nu Holdings, Inc. (NYSE: NU). Buffet or one of his advisors increased his investment in Nubank, Latin America's top digital bank, from $500 million to $1 billion in 2021. In 2023, this investment showed the highest return.
Nucripto is one of several cutting edge products. Introduced in 2022, it will allow users to trade a number of cryptocurrencies, including Ethereum and Bitcoin. Nucripto has gained over 1 million active users in just one month since its launch.
Nubank's competitive advantage is underlined by this strategic positioning, which also demonstrates Berkshire Hathaway's vision for the potential of cryptocurrencies and digital banking services to revolutionize the financial sector.
Although Nubank's main source of income remains traditional financial products, its entry into the cryptocurrency field has established the company as a major participant in the digital currency industry in Latin America. Its growing power in this field is demonstrated by the launch of the Nucoin cryptocurrency and the inclusion of cryptocurrencies such as Polkadot and Avalanche.
Berkshire Hathaway's previous profit
According to a report from Reuters, Berkshire Hathaway has now posted record annual profits for the second year in a row. This has been possible due to gains from common stock investments and increased income from insurance operations. Rising interest rates also contributed to the company's profits. The business' operating income rose 28% to $8.48 billion in the fourth quarter.
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