Buffett's 2025 Shareholders Meeting Revelation: The "Contradictory Signals" of the encryption Industry and Long-term Value Consideration

At the 2025 Berkshire Hathaway shareholders meeting, 94-year-old Warren Buffett announced that he would step down as CEO at the end of the year, with Vice Chairman Greg Abel taking over. This meeting, known as the "Spring Festival Gala of the investment world," not only revealed the strategic shift of traditional financial giants but also provided a unique perspective for investors in the crypto assets industry — How do contradictions and opportunities coexist when the conservative 'stock god' meets the radical crypto market?

1. Buffett's "Contradictory Stance": Bombarding and Indirect Layout

Despite Warren Buffett's negative stance on Crypto Assets over the years, even calling Bitcoin "rat poison squared," Berkshire has indirectly entered the crypto space by investing in the Brazilian digital bank Nu Holdings in recent years. The company's platform Nubank Cripto supports trading of mainstream coins such as Bitcoin and Ethereum, with Berkshire having cumulatively invested $750 million since 2021, and the value of its holdings has exceeded $1.2 billion.

Analysis of Contradictions:

1. Underlying logical differences: Buffett insists on "investing only in things you understand" and believes that crypto assets lack intrinsic value, but Nu Holdings, as a fintech company, has a business model (such as digital payments, user growth) that aligns more with traditional investment frameworks.

2. Strategic Compromise: Encryption technology has become part of the financial infrastructure, and Berkshire avoids the risks of directly holding tokens through "indirect investments," while sharing in the industry's growth dividends.

3. Market Signals: Traditional institutions' penetration into the encryption industry has shifted from "rejection" to "selective acceptance," and the movements of leading companies are worth paying attention to.

4. Heirs and Future Investment Directions: Variables in Conservatism

Greg Abel's succession marks the beginning of the "post-Buffett era" for Berkshire. Although he promises to continue the value investing philosophy, his statements reveal subtle changes.

Flexibility of cash reserves: Berkshire's cash reserves reached $347.7 billion, setting a new historical high. Abel referred to it as a "strategic asset," emphasizing its use for "potential buying opportunities in the next five years." If the crypto market experiences extreme volatility (such as regulatory black swans or technical crashes), traditional capital may seize the opportunity to enter.

Technologically neutral attitude: Abel takes a wait-and-see approach to new technologies such as AI, stating that "when the opportunity matures, we will invest decisively." This pragmatic style may extend to the crypto field—if the compliance framework is sound, Berkshire may increase its layout in blockchain finance.

Geopolitical considerations: Buffett opposes using "trade as a weapon" and supports globalization. The crypto market, as a decentralized financial network, may serve as a safe-haven option in geopolitical conflicts due to its anti-sanction attributes, indirectly increasing institutional attention.

3. Insights from the Crypto Industry: Finding Long-term Value from Contradictions

Key advice for investors:

Focus on "indirect association" opportunities:

Berkshire's investment logic in Nu Holdings indicates that financial technology infrastructure (such as payment, custody, and compliance services) is more easily accepted by traditional capital than the tokens themselves.

You can pay attention to Nasdaq-listed encryption-friendly banks, compliant trading platforms, or blockchain projects in collaboration with sovereign funds.

Assessing the "Value Anchor Point:"

Buffett's criticism of Crypto Assets is centered on the "lack of cash flow," but if a project can prove its economic model (such as staking yields and real-world application scenarios), it may break through traditional valuation frameworks.

For example, the staking yields of Ethereum, the fee-sharing of DeFi protocols, etc., are building a value system similar to equity structures.

Beware of the differentiation in market sentiment:

While Berkshire holds Nu stock, it still allocates more than 90% of its cash to U.S. Treasury bonds, reflecting its strategy of "testing high-risk areas with a low proportion."

• Investors need to balance their positions and avoid deviating from long-term goals due to short-term hot topics (such as Meme coin speculation).

Betting on the compliance process:

Buffett has repeatedly emphasized to "only participate in games with clear rules." If the U.S. passes stablecoin legislation or ETF regulatory guidelines, traditional capital inflow will accelerate, and compliant tracks (such as RWA and institutional-level custody) may emerge as winners.

IV. Conclusion: Evolving Amidst Contradictions

Warren Buffett's "unity of opposites" with the crypto industry reveals an essence: the transformation of the financial world often begins at the margins and is completed through mainstream compromise. Although the "Oracle of Omaha" himself still regards Crypto Assets as "toxic", Berkshire's investment trends have proven that traditional capital cannot ignore the technology-driven migration of financial paradigms.

For crypto investors, rather than getting caught up in Buffett's criticism, it's better to focus on two points:

How to incorporate Crypto Assets into a broader valuation system (such as cash flow, user growth, network effects);

How to leverage the "indirect entry" of traditional capital to promote industry maturity.

As Buffett said: "When the opportunity arises, swing decisively"—in the crypto industry, this swing may strike the intersection of compliance, practicality, and long-term value.