For years, Warren Buffett has been outspoken about his scepticism towards cryptocurrencies. The legendary investor has repeatedly dismissed Bitcoin, describing it as ‘rat poison squared’, and has forecasted a bleak future for digital assets.
In 2018, Buffett told CNBC: ‘In terms of cryptocurrencies, generally, I can say with almost certainty that they will come to a bad ending. We don’t own any, we’re not short any, and we’ll never have a position in them.’
He explained that his reluctance stems from his own limited understanding of the technology, which makes it difficult to take a position—long or short—in something he doesn’t fully comprehend. Buffett added in 2022 that Bitcoin is unlikely to have any real utility: ‘If you told me you own all of the Bitcoin in the world and you offered it to me for $25, I wouldn’t take it because what would I do with it? I’d have to sell it back to you one way or another,’ he said during a shareholders’ meeting.
The Industry Perspective: Cash Reserves and Institutional Settlement
Despite Buffett’s aversion, experts suggest Berkshire Hathaway is sitting on a record cash pile, which could be seeking infrastructure capable of handling high-volume, institutional transactions. Crypto researcher Stellar Rippler pointed out that only a few technologies can accommodate large-scale, real-world utility and enterprise integration.
He explained that market conditions often direct significant cash reserves toward infrastructure solutions designed for efficiency—Ripple XRP being a prime candidate. XRP’s ability to support high-volume, cross-border settlement aligns with the needs of institutional investors looking for reliable, scalable solutions.
Buffett’s Preference for Utility-Driven Financial Infrastructure
Buffett has historically invested in financial infrastructure with strong utility. Meanwhile, Japan is leading the way in integrating enterprise blockchain solutions for cross-border settlement.
Berkshire Hathaway’s notable stake in Sumitomo Corporation—a key player in the SBI Holdings ecosystem—underscores this focus. SBI is also an institutional partner of Ripple through SBI Ripple Asia.
Ripple’s XRP token is developed by Ripple, a technology firm offering a blockchain-based payment network tailored for financial institutions. Its solutions provide deep liquidity and scalable settlement, making XRP attractive for infrastructure adoption.
The crypto analyst highlighted Japan’s supportive regulatory environment, parliamentary backing, and SBI leadership’s emphasis on Ripple as a key player in enterprise blockchain. These factors position Japan’s financial infrastructure to adopt Ripple’s technology on a broad scale, potentially leveraging XRP-based liquidity solutions for future settlement flows.
Berkshire Hathaway’s Past Investment in a Crypto Bank
Until the first quarter of 2025, Berkshire Hathaway held a stake of over $1 billion (£765.4 million) in Brazilian bank Nu Holdings, which operates its own crypto platform.
Berkshire initially invested $500 million (£382.7 million) in Nu Holdings during its 2021 Series G funding round, followed by an additional $250 million (£191.3 million). A year later, Nu launched Nubank Cripto, a platform supporting crypto transactions and digital token conversions.
In Q1, Berkshire Hathaway sold its entire stake in Nu Holdings, potentially realising double-digit gains. This move reflects a strategic shift, but the firm’s previous involvement in the crypto space indicates its ongoing interest in digital assets and infrastructure.
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Originally published on IBTimes UK
