By Chris Hollingworth 
Warren Buffett’s Berkshire Hathaway recently made headlines by earning $250 million through its complete divestment from the crypto-friendly Nubank. This decision to exit did not seem to be driven by performance issues, as Nu Holdings, Nubank’s parent company, reported record profits in 2024 and the first quarter of 2025.
In a filing with the US Securities and Exchange Commission (SEC) on May 15, it was confirmed that Berkshire had sold off all its positions in Nu Holdings, marking the end of its investment in the digital bank. The divestment process began in 2024, with Berkshire selling approximately 20.7 million shares in the third quarter and an additional 46.3 million shares in the fourth quarter at average prices of $13.46 and $13.22 per share, respectively. The final tranche of 40.2 million shares was sold in the first quarter of 2025 at an average price of $11.83, resulting in a total gain of around $250 million from the initial investment.
Despite Buffett’s exit, Nu Holdings continued to demonstrate strong financial performance. In the first quarter of 2025, the company reported a net income of $557.2 million, a 47% increase year-over-year. Adjusted net income also saw significant growth, reaching $606.5 million, reflecting a 37% rise compared to the previous year. In 2024, Nu Holdings achieved an annual net income of $1.97 billion, a 91% increase from 2023, indicating the robust performance of the company.
Buffett’s decision to exit Nubank aligns with Berkshire’s broader strategy of pulling back from the financial sector and increasing its cash reserves. In addition to divesting from Nu Holdings, Berkshire also sold off its holdings in Citigroup and reduced its stake in Bank of America, offloading over $2.1 billion in shares. These actions resulted in Berkshire’s cash reserves reaching a record $347.8 billion, with a significant portion invested in short-term US Treasuries.
Nubank has been a key player in the digital banking space in Brazil, offering crypto services such as trading in Bitcoin, Ether, XRP, and other cryptocurrencies directly through its app. Despite Buffett’s historical skepticism towards cryptocurrencies, Nubank’s embrace of digital assets meant that Berkshire indirectly held exposure to Bitcoin through its investment in the bank.
In conclusion, Warren Buffett’s decision to exit Nubank was not driven by performance concerns but rather aligned with Berkshire Hathaway’s broader financial strategy. Nubank’s success in the crypto-friendly banking space continues to attract attention, highlighting the evolving landscape of digital finance and investments.
