Key takeaways:
Berkshire Hathaway posted a headline revenue of $12.3 billion within the second quarter of 2025, in keeping with its newest filings. A more in-depth look reveals a rougher story, nonetheless, particularly with regards to missed hedging alternatives from ignoring Bitcoin (BTC).
Bitcoin may’ve softened Berkshire’s $4.60 billion fairness loss
The Warren Buffett-led conglomerate took a large $5 billion impairment hit on its Kraft Heinz stake through the quarter, contributing to $4.60 billion in fairness technique funding losses for the yr’s first half.
Net earnings are down sharply from the identical interval final yr, and the agency’s inventory has lagged behind each Bitcoin and the S&P 500 in 2025, particularly after Buffett introduced that he would step down from the CEO place.
As of Tuesday, Berkshire shares are up simply 3.55% year-to-date. By distinction, the S&P 500 has gained 7.51%, whereas Bitcoin is up 16.85%.
Berkshire held $100.49 billion in money and money equivalents on the finish of June, most of it parked in short-term Treasury payments and low-yield devices.
If simply 5% of that capital had been allotted to Bitcoin at first of 2025, it could have delivered over $850 million in unrealized features by August, primarily based on BTC’s 16.85% year-to-date return.
That hypothetical Bitcoin achieve wouldn’t have erased the Kraft Heinz shortfall however would have meaningfully offset the loss.
Related: How a lot Bitcoin can Berkshire Hathaway purchase?
It additionally would’ve given Berkshire extra flexibility because the firm hasn’t performed inventory buybacks within the first half of the yr.
BTC beats Berkshire’s high holdings in 2025
The missed BTC features put into perspective simply how a lot Berkshire’s conservative method has price in relative efficiency.
For occasion, the cryptocurrency has outperformed Berkshire’s high three inventory holdings — Apple (AAPL), American Express (AXP) and Coca-Cola (KO) — to this point in 2025, as proven beneath.
The irony is that Buffett has lengthy dismissed Bitcoin as “rat poison squared.” He’s repeatedly mentioned that Bitcoin produces no yield, has no intrinsic worth, and doesn’t belong in any funding portfolio.
And but, Bitcoin has outperformed Berkshire’s high holdings in a yr outlined by rising ETF inflows, institutional adoption and a macro backdrop that has more and more favored arduous property.
Related: Bitcoin ETF inflows present establishments ‘doubled down’ on BTC at $116K
Buffett’s named successor, Greg Abel, has to this point provided no public statements supporting Bitcoin or any crypto.
This article doesn’t comprise funding recommendation or suggestions. Every funding and buying and selling transfer entails danger, and readers ought to conduct their very own analysis when making a choice.
