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What amount of Bitcoin can Berkshire Hathaway purchase?

Bitcoin By
Why This Trader Believes BTC Will Surge By More Than
Why This Trader Believes BTC Will Surge By More Than

The key takeaways

  • Berkshire’s $347 billion in cash is enough money to buy about 18% of Bitcoin.

  • Greg Abel’s stance on Bitcoin is not changing from Warren Buffett.

  • Berkshire has already indirect exposure to crypto via Nu Holdings and Jefferies.

Warren Buffett announced Greg Abel will take over as Berkshire Hathaway CEO at the annual shareholders meeting held on May 3. The transition has led to speculations about Berkshire Hathaway’s ability to buy Bitcoin.BTCUnder the new leadership.

Source: Discover Crypto

Berkshire’s BTC can easily exceed Strategy’s BTC stock

Berkshire ended In Q4 of 2024, the company will have a market cap of $1.1 trillion and a record cash balance $347 billion. This represents 32%.

This company would be able to purchase approximately 3,52 million BTC at the approximate price in May of $95,000. It is approximately 17.88% Bitcoin’s 19.69 million coin circulating supply.

The company could have tapped into only $295.98 Billion in estimated reserves US Treasury. This would allow it to buy approximately 3.12 Million BTC (15.85%) of the current supply.

This would be a very impressive move. Nasdaq-listed Strategy Inc., formerly MicroStrategy, is the largest Bitcoin corporate holder in the world. It owns 553 555 BTC valued at approximately $52.2 billion on May 6th.

Berkshire could theoretically equal Strategy’s cash with about one-sixth if they convert it into Bitcoin.

Related: Strategy, Semler bag 2K Bitcoin as price edged toward $100K last week

Bitcoins held by Strategy Inc. over time. Source: BitcoinTeasuries.net

Analysts at Bernstein expect roughly $330 billion of corporate Treasury-driven Bitcoin inflows by 2029. Of this, $205 billion is expected to come from publicly listed companies in the period 2025-2029.

Analysts say that smaller companies with slower growth will be the ones who copy Strategy Inc.’s Bitcoin Strategy. Many companies see Bitcoin as a way to increase their company’s value in a time when there are few other options.

Source: X/Matthew Sigel, Head of Digital Asset Research at VanEck US

Bernstein’s bull case predicts that Strategy will purchase an additional $124 Billion in Bitcoins. The company’s capital-raising plan, recently increased, is expected to reach $84 Billion by 2027.

Is Greg Abel pro-crypto?

It’s speculative whether Berkshire buys Bitcoin under Abel.

Buffett was a value investor who preferred assets that had a tangible cash flow over those with speculative values like Bitcoin. Buffett used to call Bitcoin “a speculative asset.”rat poison squared.”

BTC has seen its price increase by almost 900% following Buffett’s critics in May 2018.

BTC/USD chart. TradingView

Berkshire has, however, adopted a crypto policy despite the fact that it is anti-crypto. indirect exposure Invest in companies that are crypto-friendly, such as Nu Holdings Jefferies Financial Group owns shares in BlackRock iShares Bitcoin Trust IBIT.

Buffett has repeatedly compared the strategy to Berkshire’s approach towards gold. ridiculed Lacking productivity. Berkshire, however, surprised the markets by buying Barrick Gold (a gold-mining company) shares in 2020.

Berkshire could be hesitant to dive into Bitcoin under Abel. However, its careful, indirect approach may expand over time as the markets develop. It remains to be determined whether this will lead to a full-scale adoption, or if it is merely a cautious toe dip.

This article contains no investment recommendations or advice. Risk is inherent in every investment decision and trade. The reader should always do research prior to making a final decision.