Key Points:
According to it, Berkshire Hathaway Latest files. A closer look reveals a rougher story, especially when it comes to ignoring Bitcoin’s hedging opportunities (BTC).
Bitcoin can soften Berkshire’s $460 billion equity loss
The Warren Buffett-led conglomerate caused $5 billion in damage to Kraft Heinz shares this quarter, causing $460 billion in equity investment losses in the first half of the year.
Net earnings fell sharply compared to the same period last year, with the company’s stock lagging behind the Bitcoin and 500 index in 2025, especially after Buffett announced that he would resign from his CEO position.
As of August 5, Berkshire stock rose only 3.55% year-on-year. By comparison, the S&P 500 rose 7.51%, while Bitcoin rose 16.85%.
Berkshire held $100.49 billion in cash and cash at the end of June, most of which were parked on short-term fiscal bills and low-yield instruments.
If only 5% of capital has been allocated to Bitcoin in early 2025, it will receive over $850 million in unrealized gains by August based on BTC’s annual return of 16.85%.
The hypothetical bitcoin earnings won’t eliminate Kraft Heinz’s shortage, but it would meaningfully offset the losses.
Related: How much Bitcoin can Berkshire Hathaway buy?
As the company did not conduct stock buybacks in the first half of this year, it will also give Berkshire more flexibility.
BTC beats Berkshire’s top holding in 2025
Missed BTC earnings reveal the cost of Berkshire’s conservative approach relative to performance.
For example, cryptocurrencies outperform Berkshire’s top three stocks (AAPL), American Express (AXP) and Coca-Cola (KO), as shown below.
Ironically, Buffett has long regarded Bitcoin as “Square rat poison. “He repeatedly said that Bitcoin has no gains generated, has no intrinsic value, and does not belong to any portfolio.
However, Bitcoin’s highest stake in the year beats ETF inflows rise,,,,, Institutional adoptionand the macro background of increasingly liking hard assets.
Related: Bitcoin ETF inflows indicate institutions “doubled” at $116K on BTC
Buffett’s successor, Berkshire’s new CEO, Greg Abel, has so far not provided public statements supporting Bitcoin or any cryptocurrency.
This article does not contain investment advice or advice. Every investment and trading move involves risks and readers should conduct their own research when making decisions.
