Bitcoin, the world’s leading cryptocurrency, is making a significant comeback in 2023, outpacing other investments, including Warren Buffett‘s “crypto bet.” As of March 17, Bitcoin’s price is up almost 55% year-to-date (YTD), while Nubank, Buffett’s popular “crypto bet,” has risen by only 26%. Meanwhile, another crypto-exposure asset, Coinbase stock (COIN), has seen the most significant rebound of the three, rising over 100% YTD.
Bitcoin Outperforms Crypto-Exposure Stocks
As Bitcoin’s price continues to rise, it is outpacing stocks with crypto-exposure. Comparing Bitcoin’s price performance with the market debut of Coinbase and Nu Holdings reveals that BTC not only regularly outperforms stocks but also crypto-exposure stocks. Although exceptions have been seen, such as with the Bitcoin mining stock boom in 2021, overall, holding Bitcoin is proving to be a better strategy year-over-year, with more upside potential than traditional stocks.
Comparing the performance of the three, as of March 17, NU is down 38% year-over-year compared to COIN’s 61.76%, almost equal to Bitcoin’s 37% losses in the same period.
Buffett’s Investment in Nubank
Buffett’s investment firm, Berkshire Hathaway, purchased $1.50 billion worth of class-A Nubank stock in two separate rounds in July 2021 and February 2022. This came as a surprise to many, as Buffett is a well-known cryptocurrency critic, and Nubank offers crypto trading services via its Nucripto wing. In May 2022, the bank said that it would allocate 1% of its net assets to Bitcoin.
Despite Nubank’s crypto exposure and NU’s price decline, Buffett has not sold a single share, according to Berkshire’s latest annual earnings report. This decision likely coincides with Nubank’s growth in the Latin American banking sector. Nu Holdings, Nubank’s parent company, reported solid 2022 results, with 140% year-on-year revenue growth and a 38% year-over-year rise in active customers.
Cathie Wood’s Investment in Coinbase
ARK Invest CEO, Cathie Wood, appears unfazed by the 57% year-over-year revenue drop in Coinbase’s earnings in 2022, continuing to buy COIN shares via her ARK Next Generation Internet ETF (ARKW) and ARK Innovation ETF (ARKK) in 2023. The COIN buys, in particular, account for roughly 30% of all the stock purchased so far this year. As a result, Coinbase has become Wood’s fifth-largest holding on record, worth nearly $670 million at the time of writing.
Conclusion
In conclusion, Bitcoin‘s rebound in 2023 has outperformed other investments, including Warren Buffett’s “crypto bet” in Nubank, and Coinbase stock has gained over 100% YTD, boosting Cathie Wood’s ARK portfolio. Despite Nubank’s crypto exposure and NU’s price decline, Buffett has not sold a single share, while Wood continues to invest in COIN shares. However, comparing Bitcoin’s price performance with that of stocks with crypto-exposure, holding Bitcoin is proving to be a better strategy year-over-year, with more upside potential than traditional stocks.
