CryptoPunk is hyped up and Buffett faces a dilemma

Legendary investor Warren Buffett has been an outspoken critic of cryptocurrencies for years. But now he may face a dilemma because some of the companies in which Berkshire Hathaway holds shares have invested in the growth of cryptocurrencies, which could cause Buffett to change his tune or be forced to sell these positions in his portfolio.

Visa, in which Buffett holds a large stake, made headlines on Monday after the company paid 49.5 Ethereum (about $150,000) for an NFT artwork, CryptoPunk No. 7610. Visa's move could help legitimize NFTs as it marks a large, well-known company betting on a non-financial product asset with rising valuations.

Visa has said it wants to “have a seat at the table” for the growth of NFTs. The company has been developing cryptocurrency services and products.

Buffett is one of Visa's largest shareholders, holding 9,987,460 shares of the company at the end of the second quarter, equivalent to 0.59% of outstanding shares. Visa is Berkshire Hathaway's 16th largest holding, with these positions worth about $2.3 billion.

Buffett has always had a negative view on cryptocurrencies, once saying that Bitcoin "might be rat poison squared" and is destined to have a bad ending.

However, Buffett has remained relatively silent on the emergence of Ethereum and NFTs. If he were to speak out against either investment, it would mean criticizing the company that accounts for a large portion of his portfolio.

In addition to Visa, Berkshire Hathaway also owns a stake in Brazilian fintech startup Nubank, which has also supported cryptocurrencies and now offers Bitcoin exposure through an ETF and has a dedicated section on its website for cryptocurrencies.

What will Buffett do? Will he change his attitude towards cryptocurrencies and remain silent about the companies he invests in turning to crypto growth projects, or will he start selling shares in companies like Visa because of his dislike for cryptocurrencies?