Warren Buffett Misses $850M in Bitcoin Gains by Sticking to Cash in H1 2025
Warren Buffett has faced substantial missed opportunities by avoiding Bitcoin, which has shown significant gains in 2025. Berkshire Hathaway could have earned $850 million from a mere 5% allocation to Bitcoin, given the cryptocurrency's 16.85% increase year-to-date. Instead, Berkshire reported a $4.60 billion equity loss, primarily due to a $5 billion impairment related to its Kraft Heinz stake. While Buffett remains critical of Bitcoin, referring to it as having no intrinsic value, the performance of Bitcoin has surpassed that of Berkshire's key investments, including Apple, American Express, and Coca-Cola this year. Berkshire's stock has only risen 3.55% in contrast to the broader S&P 500 index's 7.51% increase. The firm continues to hold around $100 billion in cash, much of which is in low-yield instruments, missing out on potential gains from the cryptocurrency market. This scenario highlights the risk Berkshire faces from its conservative investment ideology, particularly as it pertains to tech and asset classes that can act as hedges or growth vehicles.
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