Shares of Nu Holdings Ltd. (NU), a Brazilian digital bank with its own cryptocurrency platform, soared 6.62% in intraday trading on Wednesday, outperforming the broader market.
The surge in Nu Holdings' stock price can be attributed to the increasing investment from Warren Buffett's Berkshire Hathaway, which has taken a significant stake in the crypto-linked fintech company.
According to recent reports, Berkshire Hathaway has invested over $750 million in Nu Holdings since 2021, including a $250 million investment in a Series G funding round. As of the third quarter of fiscal 2025, Berkshire owns more than 86 million shares in Nu Holdings, valued at nearly $1.2 billion.
This move is particularly surprising given Buffett's long-standing criticism of cryptocurrencies, which he once described as "probably rat poison squared." However, Nu Holdings operates its own cryptocurrency platform, Nubank Cripto, which supports various digital assets like Bitcoin, Ethereum, and Polygon.
Analysts suggest that Berkshire Hathaway's investment in Nu Holdings signals a potential shift in Buffett's stance towards cryptocurrencies, as the company stands to benefit from the growth of Nu's crypto-related services. While Berkshire Hathaway has not officially commented on the investment, it represents a significant exposure to the cryptocurrency market, which Buffett has previously avoided.
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