Bitcoin News Today: Berkshire Misses $850M Bitcoin Gains Amid 16.85% YTD Return

Berkshire Hathaway’s conservative investment strategy has drawn renewed scrutiny as Bitcoin’s 2025 performance has highlighted a potential missed opportunity worth over $850 million. At the end of June 2025, the conglomerate held $100.49 billion in cash and cash equivalents, largely in low-yield instruments, rather than allocating even a small portion to Bitcoin [1]. If just 5% of that capital had been invested in Bitcoin at the start of 2025, it would have yielded significant unrealized gains based on BTC’s 16.85% year-to-date return by early August [1]. This stark contrast underscores the growing debate about whether Berkshire’s traditional value investing model is ill-suited for a market increasingly driven by alternative assets.

Bitcoin’s outperformance extends beyond cash equivalents, as it has also surpassed Berkshire’s top three stock holdings—Apple, American Express, and Coca-Cola—in 2025 returns [1]. While Buffett has long dismissed Bitcoin as having no intrinsic value, the crypto market’s institutional adoption, rising ETF inflows, and macroeconomic tailwinds have fueled its strong performance. The situation raises questions about the adaptability of Berkshire’s investment philosophy in an evolving financial landscape.

The firm’s struggles were further highlighted by a $4.6 billion equity loss in the first half of 2025, largely attributed to a $5 billion impairment on its Kraft Heinz stake. This loss could have been meaningfully offset by gains from a modest Bitcoin allocation, though it would not have fully erased the deficit [1]. The decision not to engage with digital assets also contrasts with the success of firms like Exodus Movement, which reported a surge in digital asset holdings and swap volume in July 2025 [3].

Berkshire’s stock performance has also lagged behind both Bitcoin and the S&P 500 in 2025. As of early August, its shares had risen only 3.55% year-to-date, compared to 7.51% for the S&P 500 and 16.85% for Bitcoin [1]. This underperformance has coincided with Buffett’s announced succession plan, adding to investor concerns about the company’s future direction. Greg Abel, Buffett’s successor, has yet to publicly express any support for digital assets, signaling that Berkshire may remain cautious in its approach to crypto.

The market dynamics of 2025 have increasingly favored hard assets, with Bitcoin benefiting from broader macroeconomic trends such as inflation and interest rate uncertainty. As a result, the performance of traditional value stocks has appeared less compelling. While Buffett’s long-standing investment principles emphasize stability and intrinsic value, the growing influence of digital assets suggests that even the most established investment strategies may need to evolve to remain competitive.

Sources:

[1] Berkshire Misses $850M in Bitcoin Gains Amid 16.85% YTD Return (https://www.ainvest.com/news/bitcoin-news-today-berkshire-misses-850m-bitcoin-gains-16-85-ytd-return-2508/)

[2] Warren Buffett's Exit Triggers $3B Sell-Off (https://www.interactivecrypto.com/warren-buffetts-exit-triggers-3b-sell-off-whats-next-for-berkshire-hathaway)

[3] Exodus Movement Reports July 2025 Crypto Holdings Surge (https://www.tipranks.com/news/company-announcements/exodus-movement-reports-july-2025-crypto-holdings-surge)

[4] Berkshire Hathaway B Plummets 3.67%: A Perfect Storm of Earnings, Write-Downs, and Market Sentiment? (https://www.ainvest.com/news/berkshire-hathaway-plunges-3-13-earnings-woes-strategic-shifts-buffett-legacy-crossroads-2508/)