Nu Holdings Ltd. (NYSE: NU), the guardian firm of Brazilian digital financial institution Nubank, has remained comparatively secure in latest periods, buying and selling close to $13.18 on Could 16 after posting a 22% good points in April, and persevering with its inexperienced run in Could. The fintech agency has continued to ship robust buyer development, now serving over 119 million customers throughout Latin America.
Nevertheless, its Q1 2025 earnings report revealed a combined image: income climbed 19% year-over-year to $3.2 billion, however internet revenue of $606.5 million got here in under analyst expectations. The corporate’s enlargement efforts, together with its push into Mexico and deepening presence in Colombia, haven’t but translated into margin energy.
In the meantime, broader macro indicators have supported NU’s share price. Cooling U.S. inflation and the prospect of decrease charges have buoyed fintech and development shares, particularly in rising markets. But, uncertainty stays over the sustainability of earnings within the face of rising competitors and protracted NIM compression. Towards this backdrop, one headline stood out — Berkshire Hathaway, as soon as a vocal backer of Nu Holdings, exited its place earlier this quarter.
Berkshire’s Nu Exit: A Calculated Retreat or a Crypto Rejection?
In Q1 2025, Berkshire Hathaway, underneath Warren Buffett’s management, absolutely divested its stake in Nu Holdings. This transfer, disclosed in Berkshire’s 13F submitting on Could 15, concluded an funding that started with a $500 million Collection G funding spherical in 2021, adopted by a further $250 million.
The exit netted Berkshire a $250 million revenue. Concurrently, Berkshire additionally offered its remaining Citigroup shares, lowered its Financial institution of America holdings by roughly $2 billion, and elevated its positions in consumer-focused firms like Constellation Manufacturers and Pool Corp by 113% and 145%, respectively.
A major issue on this resolution seems to be Nubank’s increasing involvement within the cryptocurrency sector. On March 25, 2025, Nubank introduced the addition of Cardano (ADA), Close to Protocol (NEAR), Cosmos (ATOM), and Algorand (ALGO) to its Nubank Cripto platform, bringing the overall variety of supported tokens to twenty.
The enlargement complemented its present choices, which included Bitcoin, Ethereum, Solana, USDC, and XRP. Moreover, Nubank had allotted 1% of its internet property to Bitcoin in 2022, signaling a deeper dedication to the crypto ecosystem.
Buffett’s longstanding skepticism towards cryptocurrencies possible influenced Berkshire’s resolution. The veteran investor has beforehand described Bitcoin as “rat poison squared” and emphasised that it “doesn’t produce anything.” For Buffett, investments ought to generate tangible worth, and the speculative nature of cryptocurrencies doesn’t align with this precept.
Regardless of Nubank’s spectacular development trajectory and powerful buyer base, its rising publicity to risky digital property launched dangers that conflicted with Berkshire’s conservative funding philosophy. The choice to exit displays each a strategic profit-taking transfer and a principled stance in opposition to the speculative course Nubank was heading towards.
Inventory Eyes Breakout as Worth Approaches Key Provide Zone
Nu Holdings Ltd. traded close to $13.08 after rallying sharply from its March lows. The uptrend reveals robust construction, with price holding persistently above clustered transferring averages. Notably, the 50-day EMA (purple) is on the verge of forming a golden cross with the 100-day EMA (blue), a sign that always precedes sustained bullish continuation.
From a structural perspective, price motion is approaching a big resistance confluence. The $13.60 stage aligns with the 0.618 Fibonacci retracement. Shifting above the rapid resistance would convey NU price near the broader provide zone above the resistance at $14.58. These ranges have traditionally triggered promoting stress, as seen through the failed breakout makes an attempt in Nov. 2024 and Jan. 2025.
A transparent break above $14.00 may open the trail to retest $15.88, the ultimate resistance from the earlier swing excessive. If bullish momentum persists past that, Fibonacci extension targets counsel attainable medium-term upside towards $18.35 and $19.57.
On the draw back, rapid help lies close to $12.89 — the 0.5 Fib stage — adopted by a extra vital help band at $12.19 and $11.31. A breach under this vary may speed up draw back towards $9.90, the place a high-volume node aligns with historic demand.
The amount profile suggests rising curiosity, however the price should keep above $13.00 to maintain the breakout narrative. The RSI sits at 65.4, nearing overbought situations however nonetheless supportive of upward motion if quantity confirms the breakout.
If the golden cross triggers within the coming periods, NU inventory might entice recent inflows, particularly from momentum-driven portfolios looking for affirmation above the $14.00 mark. As such, the inventory may survive the breakup with Warren Buffett’s Berkshire Hathaway.