Core Viewpoint - Nu Holdings is a rapidly growing fintech company operating in Brazil, Colombia, and Mexico, presenting significant long-term investment potential due to its innovative approach and market opportunities in cryptocurrency and profitability growth [1]. Group 1: Cryptocurrency Adoption - Nu Holdings disrupted the Latin American financial sector by launching a digital bank in 2013, targeting a market dominated by traditional banks [2]. - The digital-only model allows Nu to eliminate physical branch costs, enabling faster innovation and product delivery [3]. - The company has grown its customer base from zero to over 100 million in less than a decade, with more than half of Brazilian adults now using its services [4]. - The launch of its crypto service attracted over 1 million users in the first month, indicating strong consumer interest in cryptocurrency [5]. - The historical reliance on foreign currencies and local currency volatility in Latin America creates a favorable environment for crypto adoption [6]. - The digital currency market in Latin America is still developing, but its growth could significantly benefit Nu in the long term [7]. Group 2: Profitability Growth - Nu recently achieved profitability for the first time since going public in 2021, with profit margins turning positive in Q1 2024 [9]. - The company's asset-light business model allows for rapid scaling and spreading of fixed costs across a large user base, likely leading to continued profit margin expansion [10]. - Despite a slowdown in growth as Nu penetrates its target markets, annual revenue gains remain in double digits, and the stock's valuation at 31.2 times trailing earnings is attractive compared to the S&P 500's 29.6 times [12]. - With reasonable valuation and multiple avenues for revenue and profit growth, Nu is positioned as a compelling long-term investment opportunity [13].