The year 2023 has brought about a remarkable recovery for Bitcoin, which in turn has propelled the Coinbase stock to a staggering 100% year to date increase.
This positive development has significantly bolstered Cathie Wood’s ARK portfolio, underscoring the rising popularity of digital currencies among investors.
In fact, both Bitcoin and Cathie Wood’s Coinbase investment have outshined Warren Buffett’s much-touted crypto bet in Brazil’s fintech behemoth Nubank, marking a significant shift in the traditional investment landscape.
In 2023, the performance of Bitcoin, Nubank, and Coinbase stock has been a hot topic of discussion among investors.
Bitcoin has been leading the pack with a remarkable 55% increase in its price, outperforming Nubank, which has only risen by 26% over the same period. Meanwhile, Coinbase stock has witnessed an impressive surge, with gains of over 100 percent YTD.
However, when looking at the past year, Warren Buffett’s investment in Nubank has performed better than Coinbase, with Nubank down only 38% YOY, while COIN has declined by 61.76 percent, almost on par with BTC’s 37 percent losses during the same time frame.
How it all Began
In an unexpected move, Warren Buffett’s investment firm, which is called Berkshire Hathaway, made headlines when it acquired $1.50 billion worth of class-A Nubank stock in two rounds.
The first round was in July 2021 and then the second round was in February 2022. This raised eyebrows as Buffett has long been a vocal critic of cryptocurrencies, and Nubank offers crypto trading services through its Nucripto wing.
However, in May 2022, Nubank announced that it would allocate 1% of its net assets to Bitcoin, underscoring its confidence in the disruptive potential of cryptocurrency in the financial services sector in the region.
This bold move by Nubank was a testament to its unwavering conviction in Bitcoin’s present and future prospects.
Berkshire Hathaway’s latest annual earnings report has revealed that despite the decline in Nubank’s stock price and the bank’s crypto exposure, Warren Buffett has not sold a single share.
It seems that the decision to hold onto NU during a turbulent market is tied to Nubank’s growth and success in the Latin American banking industry.
The parent company of Nubank, Nu Holdings, reported a strong performance in 2022, with a remarkable 140% year-on-year growth in revenue and a 38% year-over-year increase in active customers.
These impressive figures suggest that Buffett’s investment in Nubank may yet prove to be a wise move in the long run.
BTC’s Performance in Relation to Coinbase
When comparing Bitcoin’s price performance with the market debut of Coinbase, along with Nu Holdings, it becomes apparent that BTC not only consistently outperforms stocks but also crypto-exposed stocks.
Although there have been exceptions, such as the Bitcoin mining stock boom in 2021, the overall trend suggests that holding Bitcoin as an investment strategy is proving to be a wiser choice time after time, with greater potential for upside growth.
Interestingly, NU’s market debut in December 2021 has not been a favorable one, with its price dropping by over 50% since then. In contrast, BTC has held up better, with a 44% decline during the same period.
These figures further emphasize the dominance of Bitcoin in the digital asset landscape and highlight its resilience even in the face of market turbulence.
Will Bitcoin Continue to Reign Supreme?
Bitcoin’s current lead over the crypto bet by Warren Buffet has a lot of people talking. There have been questions regarding whether BTC will continue to reign supreme in the years to come or if there could be a paradigm shift.
While it is too early to predict bitcoin’s long-term success, its current trajectory definitely shows that BTC maybe just a few steps ahead of the crypto bet. That’s not all, as experts think that bitcoin will also have the lead over other cryptocurrencies.