How Much Bitcoin Could Berkshire Hathaway Buy?

Author: Yashu Gola, CoinTelegraph; Compiler: Baishui, Golden Finance

Key Points:

• Berkshire holds $347 billion in cash, enough to buy about 18% of the Bitcoin supply.

• Greg Abel has not yet hinted at changing Warren Buffett's anti-Bitcoin stance.

• Berkshire has already invested in cryptocurrencies indirectly through Nu Holdings and Jefferies.

On May 3, Warren Buffett announced at the Berkshire Hathaway annual shareholder meeting that he would step down as CEO at the end of 2025 and be replaced by Greg Abel. The change has sparked speculation about Berkshire’s financial ability to buy Bitcoin under new leadership.

Berkshire’s Bitcoin holdings could easily surpass Strategy’s Bitcoin reserves

As of the fourth quarter of 2024, Berkshire held a record $347 billion in cash and U.S. Treasuries, or about 32% of its $1.1 trillion market value.

If Berkshire bought Bitcoin at a price of around $95,000 in May, it could have acquired about 3.52 million Bitcoins, equivalent to 17.88% of the Bitcoin circulation (19.69 million).

If Berkshire only used its estimated $295.98 billion worth of U.S. Treasury bonds, it could have purchased about 3.12 million Bitcoins, accounting for 15.85% of the circulation, thus becoming the dominant player in the cryptocurrency market.

The move would easily surpass Nasdaq-listed Strategy Inc. (formerly MicroStrategy), the world's largest corporate bitcoin holder, which held 553,555 bitcoins worth about $52.2 billion as of May 6.

In other words, if Berkshire Hathaway converts about one-sixth of its cash reserves into bitcoin, it could theoretically match Strategy's bitcoin reserves.

Strategy Inc. Bitcoin holdings over time. Source: BitcoinTeasuries.net

Bernstein analysts predict that by 2029, corporate funds will flow into the Bitcoin market, with an inflow of approximately US$330 billion, of which inflows from listed companies are expected to reach US$205 billion between 2025 and 2029.

Analysts say much of that money will come from smaller, slower-growing companies trying to copy Strategy Inc.’s bitcoin strategy, which they see as one of the few ways to boost their value when other growth options are scarce.

Source: X/Matthew Sigel, Head of Digital Asset Research at VanEck US

Bernstein's bullish forecast sees Strategy alone buying an additional $124 billion in Bitcoin, thanks to the firm's recently expanded fundraising plan, which aims to raise $84 billion by 2027, nearly double its previous target.

Does Greg Abel support cryptocurrencies?

Whether Berkshire Hathaway will buy Bitcoin under Abel’s leadership is still up in the air.

The new Berkshire leader has not publicly indicated a desire to change Buffett’s value investing philosophy, which prioritizes assets with tangible cash flows over speculative assets like Bitcoin, which Buffett once called “rat poison squared.”

The price of Bitcoin has risen nearly 900% since Buffett criticized it in May 2018.

BTC/USD two-week price chart. Source: TradingView

However, despite Berkshire's anti-crypto stance, it has indirectly dabbled in the space through investments in crypto-friendly companies such as Nu Holdings and Jefferies Financial Group, which owns a stake in BlackRock's iShares Bitcoin Trust (IBIT).

The strategy is similar to Berkshire's investment approach to gold, which Buffett has repeatedly derided for its lack of productivity. However, Berkshire unexpectedly bought shares of Barrick Gold, a gold mining company, in 2020, although it later sold the holding.

Under Abel's leadership, Berkshire may not get directly involved in Bitcoin, but its cautious, indirect investment strategy is likely to expand as the market develops. Whether this ultimately leads to full-scale Bitcoin adoption or a cautious test of the waters remains to be seen.