Berkshire Hathaway holds $347 billion in cash, capable of purchasing up to ~18% of Bitcoin’s supply. With Greg Abel set to take over from Warren Buffett, speculation arises regarding a potential shift in the company’s stance on Bitcoin. Despite a historical anti-crypto position, Berkshire has indirect exposure to the sector through other investments, like Nu Holdings and Jefferies.
Berkshire Hathaway’s financial position has come into sharp focus in light of its $347 billion cash reserve, sufficient to purchase a significant amount of Bitcoin (BTC). This figure amounts to nearly 18% of Bitcoin’s total circulating supply. As Greg Abel prepares to take the helm after Warren Buffett steps down by 2025, industry watchers are pondering how this leadership change might influence Berkshire’s stance on crypto assets.
With a cash cushion that represents approximately 32% of Berkshire’s colossal $1.1 trillion market cap, it has the financial muscle to scoop up around 3.52 million BTC at May’s price of about $95,000 each. If Berkshire were to solely tap into its $295.98 billion in US Treasury securities, that number drops slightly to around 3.12 million BTC, translating to about 15.85% of the total supply. These calculations position Berkshire as a formidable force in any potential crypto market expansion.
Interestingly enough, such a move would position Berkshire far ahead of Strategy Inc. (formerly MicroStrategy), the current record-holder for corporate Bitcoin acquisitions, which has amassed 553,555 BTC currently valued at around $52.2 billion as of early May. Berkshire could effectively match Strategy’s holdings with just a fraction of its cash, highlighting the company’s significant leverage in this hypothetical market shift.
Looking ahead, Bernstein analysts predict a surge of corporate investments in Bitcoin, estimating around $330 billion in inflows by 2029. Much of this influx, they believe, will stem from smaller firms hoping to replicate Strategy’s successful crypto strategy, particularly as growth opportunities wane.
Bundled within these projections is the anticipation of an additional $124 billion in Bitcoin purchases specifically from Strategy due to their aggressive capital-raising plans aiming for $84 billion by 2027. It appears these firms are increasingly viewing Bitcoin as a potential growth avenue when traditional investment options seem unappealing.
Now, the big question is whether Greg Abel, once he takes over, will steer Berkshire towards purchasing Bitcoin. As of now, Abel hasn’t signalled any departure from Buffett’s traditional investment philosophy, which favours assets with sound cash flows over speculative investments like Bitcoin—acknowledged by Buffett as “rat poison squared.”
Despite the anti-Bitcoin sentiment that has permeated Berkshire for years, the company does have some indirect exposure through its stakes in crypto-adjacent firms such as Nu Holdings and Jefferies Financial Group. However, it’s reminiscent of how Berkshire previously hesitated before investing in gold, a move Buffett historically dismissed. In a surprising twist, Berkshire did buy shares in a gold mining company—Barrick Gold—in 2020, though they were ultimately divested.
While it’s unlikely Berkshire will leap straight into BTC purchases under Abel, there’s a possibility they might gradually embrace a more cautious, indirect approach as crypto markets develop. The question of whether this could evolve to outright investment or just a conservative exploration remains up in the air.
As always, readers should remember that this piece does not constitute investment advice or recommendations. Every financial decision carries inherent risks, so thorough research is crucial before diving into any investments.
