Berkshire Hathaway Could Buy 17.88% of Bitcoin’s Circulating Supply with Cash Reserves

Berkshire Hathaway, with its substantial cash reserves, has the financial capacity to significantly impact the Bitcoin market. The company ended the fourth quarter of 2024 with a record $347 billion in cash and US Treasury bills, which represents about 32% of its $1.1 trillion market capitalization. At the approximate price of $95,000 per Bitcoin in May, Berkshire could acquire around 3.52 million BTC, equating to about 17.88% of Bitcoin’s circulating supply of 19.69 million coins. Even if the company were to use only its estimated $295.98 billion in US Treasury bills, it could purchase around 3.12 million BTC, or 15.85% of the circulating supply, positioning it as a dominant player in the crypto market.

Such a move would surpass the holdings of Strategy Inc., the world’s largest corporate Bitcoin holder, which owns 553,555 BTC worth approximately $52.2 billion as of May 6. Berkshire could theoretically match Strategy’s stash with roughly one-sixth of its cash pile if it converts it to Bitcoin. This highlights the significant influence Berkshire could have on the Bitcoin market if it were to make such a purchase.

The transition of leadership at Berkshire Hathaway, with Warren Buffett stepping down as CEO by the end of 2025 and Greg Abel taking over, has raised speculation about the company’s future stance on Bitcoin. Buffett has been known for his anti-Bitcoin stance, describing it as “rat poison squared.” However, Abel has not publicly indicated a shift from Buffett’s value-investing philosophy, which prioritizes assets with tangible cash flows over speculative ones like Bitcoin. Despite this, Berkshire has indirect exposure to the crypto sector through investments in companies like Nu Holdings and Jefferies Financial Group, which holds shares in BlackRock’s iShares Bitcoin Trust.

Berkshire’s approach to Bitcoin under Abel’s leadership remains speculative. While Abel has not signaled a shift from Buffett’s anti-crypto stance, the company’s indirect exposure to the sector suggests a cautious, indirect approach. This strategy is similar to how Berkshire approached gold, which Buffett repeatedly ridiculed for lacking productivity. However, Berkshire surprised markets by buying Barrick Gold shares in 2020, though it later sold that position. Under Abel, Berkshire may not dive straight into Bitcoin, but its cautious, indirect approach could expand as markets evolve. Whether that leads to full adoption or careful toe-dipping remains to be seen.