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Notable investor Warren Buffett has consistently excluded cryptocurrencies, particularly Bitcoin (CRYPTO: BTC), from his firm Berkshire Hathaway Inc. (NYSE:BRK), yet interestingly, the holding company maintains ties to a firm that endorses the leading cryptocurrency as a hedge against inflation.
What transpired: Recent 13F filings reveal that Berkshire Hathaway possesses 433,558 shares of financial services provider Jefferies Financial Group Inc. (NYSE:JEF), valued at approximately $34 million.
The New York City-based firm is engaged in investment banking, capital markets, and asset management services.
Key Insight:
Importantly, Jefferies has a substantial interest in iShares Bitcoin Trust ETF (NASDAQ:IBIT), the largest spot Bitcoin exchange-traded fund worldwide. SEC filings indicate that Jefferies owns 1,615,731 shares of IBIT, worth over $85 million.
This investment decision likely arises from Jefferies’ optimistic long-term outlook on the premier digital asset.
According to an October 2023 report by CNBC, Jefferies considers Bitcoin a “crucial hedge” against the devaluation of fiat currencies and inflation.
The investment bank highlighted that the narrative of Bitcoin as an insurance policy gained momentum following the U.S. banking crisis earlier this year and suggested a 10% allocation to Bitcoin for long-term U.S. dollar-based investors.
This optimistic perspective sharply contrasts with Buffett’s skeptical stance on Bitcoin. During the 2018 Berkshire Hathaway annual shareholder meeting, the “Oracle of Omaha” referred to Bitcoin as “probably rat poison squared” and predicted a “bad ending” for the cryptocurrency.
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This article titled “Warren Buffett Avoids Bitcoin, But Did You Know Berkshire Hathaway Holds a Stake in a Company Advocating BTC as a ‘Critical’ Inflation Hedge” originally appeared on Benzinga.com
