$347 Billion in Available Funds: Berkshire Hathaway Could Buy 18% of All Bitcoins

Greg Abel, who will lead Berkshire Hathaway, is getting $347 billion to manage-enough to acquire nearly 18% of the total Bitcoin supply. At Berkshire Hathaway’s annual shareholder meeting on May 3, Warren Buffett announced that he would step down as CEO by the end of 2025, handing the reins to Greg Abel. The decision has ignited speculation about the conglomerate’s financial ability to acquire Bitcoin under the new leadership. Berkshire could easily outperform Strategy’s holdings By the end of the fourth quarter of 2024, Berkshire had accumulated a record $347 billion in cash and U.S. Treasuries, which is about 32% of its $1.1 trillion market capitalization. The company could acquire approximately 3.52 million BTC if it were to buy the cryptocurrency at the May price of about $95,000. That’s equivalent to about 17.88% of Bitcoin’s circulating supply of 19.69 million coins. If the company were to use only its roughly $295.98 billion worth of U.S. Treasuries, it could buy about 3.12 million BTC, or 15.85% of the circulating supply, making it the dominant player in the crypto market. Such a move would easily eclipse Strategy, which is the largest corporate holder of Bitcoin in the world, with 553,555 BTC worth about $52.2 billion. In other words, Berkshire could theoretically equal Strategy’s holdings by converting just a sixth of its dollars into Bitcoin. Bernstein analysts predict a massive influx of funds into Bitcoin Bernstein analysts predict an influx of roughly $330 billion in corporate treasuries into Bitcoin by 2029, with $205 billion expected from publicly traded companies between 2025 and 2029. Much of that funding, analysts say, will come from smaller, slow-growth companies trying to copy Strategy’s Bitcoin strategy. They see it as one of the few ways to increase their value when other growth options are limited. In an optimistic scenario, Bernstein forecasts an additional $124 billion in Bitcoin purchases by Strategy alone, bolstered by the company’s recently increased capital-raising plans, which target $84 billion by 2027, nearly double the previous goal. Greg Abel and his take on Cryptocurrencies Whether Berkshire will buy Bitcoin under Abel’s leadership remains an open question. The new leader of Berkshire Hathaway has not publicly indicated a departure from Buffett’s investment philosophy, which prioritizes assets with tangible cash flows over speculative assets like Bitcoin, which Buffett once described as “rat poison squared.” Since that statement by Buffett in May 2018, the price of BTC has risen nearly 900%. However, Berkshire, despite its critical stance, has an indirect presence in the sector through investments in cryptocurrency-friendly companies such as Nu Holdings and Jefferies Financial Group, which owns shares in the BlackRock iShares Bitcoin Trust (IBIT), one of the top Bitcoin ETFs. This strategy is similar to how Berkshire approached gold, which Buffett has repeatedly derided as an asset that doesn’t create value or cash flow on its own, as opposed to a business or dividends. But Berkshire surprised markets by buying shares in gold miner Barrick Gold in 2020, though it later sold the position. Under the new leadership, Berkshire won’t necessarily start investing directly in Bitcoin, but Abel’s strategy for digital assets will be an important indicator for the entire investment community. Kraken: Best crypto exchange for security & reliability Buy, sell, and trade 400+ cryptocurrencies with industry-leading security Spot, Futures & Margin trading – leverage up to 5x for advanced traders Earn rewards with staking on top cryptocurrencies 24/7 customer support and high liquidity for fast trades Regulated in the US with strong compliance and security measures 13+ million users worldwide Get Started on Kraken Source: https://coincodex.com/article/67178/berkshire-hathaway-347b-buy-18-percent-bitcoin/