Berkshire Hathaway’s Bitcoin Blind Spot: A Missed Opportunity
Berkshire Hathaway, the conglomerate led by Warren Buffett, has reported a headline profit of $12.3 billion in the second quarter of 2025. However, a closer look at the company’s financials reveals a more nuanced story, particularly when it comes to the potential benefits of investing in Bitcoin (BTC). Despite Buffett’s long-standing skepticism towards the cryptocurrency, Bitcoin has outperformed Berkshire’s top holdings in 2025, including Apple, American Express, and Coca-Cola.
The Cost of Ignoring Bitcoin
Berkshire Hathaway took a significant hit in the second quarter, with a $5 billion impairment charge on its Kraft Heinz stake contributing to a $4.60 billion loss in equity method investments for the first half of the year. This loss could have been partially offset if the company had invested just 5% of its cash holdings in Bitcoin at the beginning of 2025. With $100.49 billion in cash and cash equivalents, a 5% allocation to Bitcoin would have yielded over $850 million in unrealized gains by August, based on the cryptocurrency’s 16.85% year-to-date return.
This hypothetical gain would not have erased the Kraft Heinz shortfall, but it would have provided a significant boost to Berkshire’s bottom line. Moreover, it would have given the company more flexibility, as it has not conducted any stock buybacks in the first half of the year. The fact that Bitcoin has outperformed Berkshire’s top holdings in 2025 highlights the potential cost of the company’s conservative approach to investing.
A Contrarian View
Warren Buffett has been vocal in his criticism of Bitcoin, dismissing it as “rat poison squared” and arguing that it has no intrinsic value and does not belong in any investment portfolio. However, the cryptocurrency’s performance in 2025 has proven to be a contrarian view, with Bitcoin outpacing the S&P 500 and Berkshire’s top holdings. This has led some to question whether Buffett’s skepticism towards Bitcoin is misplaced, particularly given the growing institutional adoption and rising ETF inflows into the cryptocurrency.
The irony is that Berkshire Hathaway’s named successor, Greg Abel, has not publicly supported Bitcoin or any other cryptocurrency. This lack of enthusiasm towards Bitcoin may be a missed opportunity for the company, particularly given the potential benefits of diversifying its investment portfolio. As the cryptocurrency market continues to evolve, it will be interesting to see whether Berkshire Hathaway reconsiders its stance on Bitcoin and explores the potential benefits of investing in the cryptocurrency.
Investment Implications
The article is not intended to provide investment advice or recommendations. However, it highlights the potential benefits and risks of investing in Bitcoin and other cryptocurrencies. Investors should conduct their own research and consider their own risk tolerance before making any investment decisions. The fact that Bitcoin has outperformed traditional assets in 2025 is a reminder that the cryptocurrency market can be volatile and unpredictable, and investors should approach it with caution.
