How much Bitcoin can Berkshire Hathaway buy?

1 day ago

Key takeaways:

Berkshire holds $347B successful cash, capable to bargain ~18% of Bitcoin’s supply.
Greg Abel has not signaled a displacement from Warren Buffett’s anti-Bitcoin stance.
Berkshire already has indirect crypto vulnerability via Nu Holdings, Jefferies.

Warren Buffett announced astatine Berkshire Hathaway's yearly shareholder gathering connected May 3 that helium volition measurement down arsenic CEO by the extremity of 2025, with Greg Abel taking over. This modulation raises speculation astir Berkshire’s fiscal capableness to acquisition Bitcoin (BTC) nether the caller leadership.

Berkshire tin easy surpass Strategy’s BTC stash

Berkshire ended Q4 2024 with a grounds $347 cardinal successful currency and US Treasury bills, representing astir 32% of its $1.1 trillion marketplace capitalization.

The institution could get astir 3.52 cardinal BTC if it purchases the cryptocurrency astatine May’s approximate terms of $95,000. This equates to astir 17.88% of Bitcoin’s circulating proviso of 19.69 cardinal coins.

If the institution tapped lone its estimated $295.98 cardinal successful US Treasury, it could bargain astir 3.12 cardinal BTC, oregon 15.85% of the circulating supply, positioning it arsenic a ascendant subordinate successful the crypto market.

Berkshire Hathaway is 20th Century Bitcoin.

— Michael Saylor (@saylor) May 3, 2025

Such a determination would easy eclipse Nasdaq-listed Strategy Inc. (formerly MicroStrategy), the world’s largest firm Bitcoin holder, which owns 553,555 BTC worthy astir $52.2 cardinal arsenic of May 6.

In different words, Berkshire tin theoretically lucifer Strategy’s stash with astir one-sixth of its currency heap if it converts it to Bitcoin.

Bernstein analysts forecast astir $330 cardinal successful firm treasury-driven inflows into Bitcoin by 2029, with $205 cardinal expected from listed companies betwixt 2025 and 2029.

Much of this, analysts say, volition travel from smaller, slow-growing companies trying to transcript Strategy Inc.’s Bitcoin strategy. They spot it arsenic 1 of the fewer ways to boost their worth erstwhile different maturation options are scarce.

Bernstein’s bull lawsuit anticipates an further $124 cardinal of Bitcoin purchases from Strategy alone, backed by the company’s precocious upsized capital-raising plans, which purpose to unafraid $84 cardinal by 2027, astir treble its erstwhile target.

Is Greg Abel pro-crypto?

Whether Berkshire would bargain Bitcoin nether Abel’s enactment is speculative.

The caller Berkshire Hathaway person has not publically indicated a displacement from Buffett’s value-investing philosophy, prioritizing assets with tangible currency flows implicit speculative ones similar Bitcoin, which Buffett erstwhile termed “rat poison squared.”

BTC’s terms has climbed by astir 900% since Buffett’s disapproval successful May 2018.

However, Berkshire, contempt its anti-crypto stance, has indirect exposure successful the assemblage done investments successful crypto-friendly companies similar Nu Holdings and Jefferies Financial Group, which holds shares successful BlackRock’s iShares Bitcoin Trust (IBIT).

The strategy is akin to however Berkshire approached gold, which Buffett repeatedly ridiculed for lacking productivity. However, Berkshire amazed markets by buying Barrick Gold shares (a golden mining company) successful 2020, though it aboriginal sold that position.

Under Abel, Berkshire whitethorn not dive consecutive into Bitcoin, but its cautious, indirect attack could grow arsenic markets evolve. Whether that leads to afloat adoption oregon cautious toe-dipping remains to beryllium seen.

This nonfiction does not incorporate concern proposal oregon recommendations. Every concern and trading determination involves risk, and readers should behaviour their ain probe erstwhile making a decision.

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