Berkshire’s Bitcoin Buying Power
With Warren Buffett‘s impending departure as CEO, the world is watching to see if Berkshire Hathaway, a company renowned for its conservative investment approach, will embrace the volatile world of cryptocurrency under new leadership. Greg Abel, the designated successor, has yet to signal any dramatic shifts in strategy, but the sheer magnitude of Berkshire’s cash reserves raises intriguing possibilities.
At the end of 2024, Berkshire boasted a record $347 billion in cash and US Treasury bills, representing a whopping 32% of its $1.1 trillion market capitalization. This colossal sum could theoretically purchase around 3.52 million Bitcoin (BTC) at May’s price of approximately $95,000, effectively acquiring 17.88% of the circulating supply. Such a move would not only establish Berkshire as a major player in the crypto market but also dwarf the current largest corporate Bitcoin holder, MicroStrategy, which owns 553,555 BTC.
A Gradual Shift?
While the prospect of Berkshire holding a significant portion of Bitcoin‘s supply is exciting, it’s important to remember that the company’s history leans heavily against such a move. Buffett has famously labelled Bitcoin “rat poison squared,” and his successor has yet to express any enthusiasm for the digital asset.
However, Berkshire’s position is not entirely anti-crypto. The company holds investments in crypto-friendly entities like Nu Holdings, a Brazilian fintech company, and Jefferies Financial Group, which has stakes in BlackRock’s iShares Bitcoin Trust (IBIT). This suggests a more nuanced approach, potentially mirroring Berkshire’s gradual foray into gold. After years of skepticism, Berkshire surprised the market by purchasing shares in Barrick Gold, a gold mining company, only to later sell off its position.
Berkshire’s future strategy towards crypto remains uncertain. While a full-fledged Bitcoin purchase may be unlikely under Abel’s leadership, the company’s indirect exposure and its immense financial capacity suggest a gradual shift in perspective is possible. As the cryptocurrency market evolves, Berkshire’s cautious approach may lead to a greater embrace of digital assets, but the extent of that embrace remains to be seen.
**Disclaimer:** This article is for informational purposes only and does not constitute financial advice. Always conduct thorough research and consider your own circumstances before making any investment decisions.
