Warren Buffett earns over $23 million thanks to a Bitcoin-related stock

Warren Buffett’s Recent Investment Success with Nu Holdings

Warren Buffett has recently surprised the investment world by earning over $23 million through a Bitcoin-related stock.
Despite his historical skepticism towards cryptocurrencies, long seen with disdain, by the end of 2021, the Oracle of Omaha invested in shares of a fintech company that facilitates the trading of various cryptocurrencies in Latin America.

This move not only highlights Buffett’s ability to adapt to change in the digital financial market but also his willingness to explore new and promising opportunities in the sector.
Berkshire Hathaway’s investment in this company could mark a turning point in the perception of cryptocurrencies among traditional investors, paving the way for greater acceptance and integration of digital assets into institutional investment portfolios.

Buffett’s $23 Million Earnings

Warren Buffett invested over $1 billion in Nu Holdings (Nubank) at the end of 2021, purchasing them at an initial price of around $9.82 per share.
Since then, the value of the shares has grown significantly, currently valued at around $12 per share.
This represents a 22% increase from the original purchase price.
Buffett’s investment in Nu Holdings not only yielded impressive returns but also highlighted his ability to identify and capitalize on opportunities in the fintech sector, despite his historical reservations about cryptocurrencies.

Nu Holdings: A Growing Fintech Powerhouse

Nu is an online bank operating in Brazil, Mexico, and Colombia, which saw its customer base grow from 54 million to 93.9 million by the end of 2023.

Initially focused on digital current and savings accounts, Nu has expanded its offerings to include credit cards, payment services, business loans, investment tools, and insurance services to attract customers with a wide range of financial solutions.
With revenue growth of 168% in 2022 and 63% in 2023, Nu has demonstrated rapid growth in the Latin American financial market, further strengthened by the introduction of Nucoin and support for other cryptocurrencies like Polkadot and Avalanche.
This has solidified its position as a significant player in the regional digital currency market.

Future Outlook for Nu Holdings

Looking ahead, the prospects for Nu Holdings appear extremely promising.
The company’s revenue increased by 168% in 2022 and 63% in 2023, reflecting a rapid expansion of its customer base and a significant increase in average monthly revenue per active customer (ARPAC).

Analysts forecast further revenue increases, with growth of 38% in 2024 and 25% in 2025, driven by expansion in Latin American markets and the diversification of services offered.
Unlike many smaller fintech companies, Nu has improved its gross margin, which saw a notable increase up to 48% in the last quarter.
This, along with a stable net interest margin around 18%, indicates solid financial management and sustainable growth.
With projected net profit growth rates of 60% in 2024 and 65% in 2025, Nu Holdings positions itself as a potentially attractive stock for investors seeking growth opportunities in the dynamic Latin American fintech sector.

*Disclaimer: The information and considerations in this article should not be used as the sole or primary basis for making investment decisions.
The reader maintains full freedom in their investment choices and full responsibility for making them, as only they know their risk appetite and time horizon.
The information in the article is provided for informational purposes only, and its disclosure does not constitute an offer or solicitation for public savings.*