The investment group led by Warren Buffett – Berkshire Hathaway – recently announced a net profit of $12.3 billion in Q2 2025. However, behind this impressive figure is a less rosy picture, especially when considering the hedging opportunities missed by ignoring Bitcoin.
The $4.6 Billion Loss May Have Been Mitigated by Bitcoin
Berkshire reported an investment loss using the equity method of up to $4.6 billion in the first half of this year, mainly due to a $5 billion write-down of its stake in Kraft Heinz in Q2.
The company's net profit has sharply decreased compared to the same period last year. Berkshire's stock has lagged behind both Bitcoin and the S&P 500 index in 2025, especially after Mr. Buffett announced he would step down as CEO.
As of August 5, Berkshire's stock has only increased by 3.55% since the beginning of the year. Meanwhile, the S&P 500 rose by 7.51% and Bitcoin surged by 16.85%.
YTD Performance:
BRK.A: +3.55%
S&P 500: +7.51%
Bitcoin: +16.85%

As of the end of June, Berkshire was holding $100.49 billion in cash and cash equivalents, mainly deposited in short-term treasury bonds and low-yield instruments.
If Only 5% Were Allocated to Bitcoin...
If only 5% of that cash – equivalent to about $5 billion – were invested in Bitcoin since the beginning of 2025, the company could have realized over $850 million in unrealized profits, based on the 16.85% increase of BTC.

Although this profit is not enough to compensate for the losses from Kraft Heinz, it will still be a significant offset. It may also help Berkshire be more flexible in deploying capital, especially since the company has not conducted any share buybacks in the first half of this year.
Bitcoin Outperforms Berkshire's Top Investments
The outstanding performance of Bitcoin further highlights the cost that Berkshire's conservative strategy has to pay this year. BTC has far outperformed the group's top holdings including Apple (AAPL), American Express (AXP), and Coca-Cola (KO).
YTD Performance:
BTC > AAPL, AXP, KO

Ironically, for many years, Buffett has always dismissed Bitcoin, once calling it a 'rat poison squared,' arguing that this asset is unprofitable, has no intrinsic value, and should not be included in any investment portfolio.
However, in the context of a strong influx of capital into ETFs, major institutions accepting Bitcoin, and macro factors supporting hard assets, Bitcoin is outperforming almost the entire portfolio of Berkshire.
Currently, Buffett's successor – new CEO Greg Abel – has not made any public statements supporting Bitcoin or the cryptocurrency market in general. $BTC