Key takeaways:
Berkshire Hathaway has posted a headline profit of $12.3 billion in the second quarter of 2025, according to its latest filings. A closer look reveals a rougher story, however, especially when it comes to missed hedging opportunities from ignoring Bitcoin (BTC).
Bitcoin couldâve softened Berkshireâs $4.60 billion equity loss
The Warren Buffett-led conglomerate took a massive $5 billion impairment hit on its Kraft Heinz stake during the quarter, contributing to $4.60 billion in equity method investment losses for the yearâs first half.
Net earnings are down sharply from the same period last year, and the firmâs stock has lagged behind both Bitcoin and the S&P 500 in 2025, especially after Buffett announced that he would step down from the CEO position.
As of Aug. 5, Berkshire shares are up just 3.55% year-to-date. By contrast, the S&P 500 has gained 7.51%, while Bitcoin is up 16.85%.
Berkshire held $100.49 billion in cash and cash equivalents at the end of June, most of it parked in short-term Treasury bills and low-yield instruments.
If just 5% of that capital had been allocated to Bitcoin at the beginning of 2025, it would have delivered over $850 million in unrealized gains by August, based on BTCâs 16.85% year-to-date return.
That hypothetical Bitcoin gain wouldnât have erased the Kraft Heinz shortfall but would have meaningfully offset the loss.
Related: How much Bitcoin can Berkshire Hathaway buy?
It also wouldâve given Berkshire more flexibility since the firm hasnât conducted stock buybacks in the first half of the year.
BTC beats Berkshireâs top holdings in 2025
The missed BTC gains put into perspective just how much Berkshireâs conservative approach has cost in relative performance.
For instance, the cryptocurrency has outperformed Berkshireâs top three stock holdingsâApple (AAPL), American Express (AXP), and Coca-Cola (KO)âso far in 2025, as shown below.
The irony is that Buffett has long dismissed Bitcoin as ârat poison squared.â Heâs repeatedly said that Bitcoin produces no yield, has no intrinsic value, and does not belong in any investment portfolio.
And yet, Bitcoin has outperformed Berkshireâs top holdings in a year defined by rising ETF inflows, institutional adoption, and a macro backdrop that has increasingly favored hard assets.
Related: Bitcoin ETF inflows show institutions âdoubled downâ on BTC at $116K
Buffettâs successor, Berkshireâs new CEO Greg Abel, has so far offered no public statements supporting Bitcoin or any crypto.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
