Key Insights

Berkshire Hathaway reported a profit of $12.3 billion for the second quarter of 2025. However, there’s a more complicated narrative here, especially if you missed the chance to hedge against risks by not investing in Bitcoin (BTC).

Bitcoin Mitigated Berkshire’s Stock Loss

The conglomerate, led by Warren Buffett, faced a hefty $5 billion impairment in Kraft Heinz’s stock this quarter, contributing to a stock-related investment loss of $4.6 billion for the first half of the year.

Net income has plummeted compared to last year, and Berkshire’s stock performance has lagged behind both Bitcoin and the S&P 500 in 2025, especially following Buffett’s announcement of his impending retirement as CEO.

As of Tuesday, Berkshire’s shares had only climbed 3.55% since the year began. In comparison, the S&P 500 gained 7.51%, while Bitcoin rose by 16.85%.

Berkshire held $1,004.9 billion in cash and equivalents at the end of June, most of which was invested in short-term Treasury bills and low-yield assets.

If Berkshire had allocated just 5% of its capital to Bitcoin at the start of 2025, it could have realized an unrealized profit of more than $850 million by August, thanks to BTC’s 16.85% increase since the beginning of the year.

This potential Bitcoin gain wouldn’t have completely offset the losses from Kraft Heinz, but it could have significantly reduced them.

Related:What’s Next for Bitcoin Investments at Berkshire Hathaway?

Moreover, it would have provided Berkshire with greater financial flexibility, particularly since the company chose not to repurchase shares early this year.

Bitcoin Outperformed Berkshire’s Top Holdings in 2025

The overlooked advantages of BTC shed light on the cost of Berkshire’s conservative approach regarding performance.

For instance, cryptocurrencies have outperformed Berkshire’s three largest stock holdings in 2025 so far: Apple (AAPL), American Express (AXP), and Coca-Cola (KO).

Interestingly, Buffett has long criticized Bitcoin, labeling it “rat poison squared,” claiming it has no yield or intrinsic value and doesn’t belong in an investment portfolio.

Yet, Bitcoin’s performance has surpassed that of Berkshire’s top holdings during a year marked by increased ETF inflows, institutional acceptance, and macroeconomic conditions favoring hard assets.

Related:The Impact of Bitcoin ETF Inflows on Market Dynamics

So far, Buffett’s successor, Greg Abel, has not made any official comments in favor of Bitcoin or cryptocurrency.

This article does not contain investment advice or recommendations. All investment and trading decisions carry risks, and readers should conduct their own research before making any choices.