Warren Buffett Convinced Me To Focus More On Stocks And Less On Crypto, eToro CEO says

eToro CEO Yoni Assia has suggested that advice from Warren Buffett influenced the firm to maintain a stock trading focus over cryptocurrencies.
According to Assia, eToro was early to cryptocurrencies.
eToro had an impressive debut on the Nasdaq.

It is no secret that Berkshire Hathaway BRK BRK.B)) CEO Warren Buffett, one of the most famous investors ever, is no fan of cryptocurrencies, once describing Bitcoin, the largest cryptocurrency by market capitalization, as “rat poison squared.”

And when the Oracle of Omaha speaks, people tend to listen. In one example of this, eToro ETOR CEO Yoni Assia recently revealed that Buffett convinced him not to bet too much on cryptocurrencies.

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Dinner With Warren Buffett

Assia has suggested that advice from Buffett influenced eToro to maintain a stock trading focus over cryptocurrencies.

“At a dinner with Warren Buffett, he actually convinced me to focus more on stocks and less on crypto, but we [eToro] love both,” Assia told CNBC in an interview on Thursday.

He said this as part of a response to how tied eToro is to cryptocurrencies and whether investors see the newly public firm as a pure crypto play. Market participants such as Bitwise Investment Strategist Juan Leon have championed this view, citing the growing percentage of the firm’s revenue coming from cryptocurrency trading. Last year, it accounted for 96% of the firm’s revenue, up nearly 10% from the previous year.

Meanwhile, according to Assia, eToro was early to cryptocurrencies.

“I started buying Bitcoin at $5 for eToro’s treasury,” he said. “$50,000 became $50 million before my board told me, I have to sell it. It’s not our business.”

When jokingly asked whether he fired this board, he told CNBC, “Maybe.”

Assia said it has been “amazing” to see the journey of cryptocurrencies from when eToro first dipped its toes to now.

“I think nobody doubts that crypto is here to stay. It’s a new type of capital markets thriving around the world,” he said. “Outside the U.S., we have more than 130 different crypto assets trading. But nonetheless, we are passionate about capital markets and the stock markets.”

An Impressive Debut

eToro shares debuted on the Nasdaq on Wednesday, opening at $69.69, 34% higher than the offer price of $52, helping the firm beat its $5 billion valuation target. At last look, the firm’s stock has shed some of these early gains to trade at $63.15, giving it a market cap of $5.11 billion.

eToro initially planned to go public in 2021 through a special purpose acquisition company but decided against the move amid the 2022 bear market. According to Assia, this turbulent market period taught the firm the value of profitability in navigating market downturns.

“eToro changed its strategy in 2022 to profitable growth,” Assia told CNBC. “We’ve significantly scaled profitability, making more than $300 million of adjusted EBITDA last year.”

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