Warren Buffett's Berkshire Hathaway did crash 99% ...against Bitcoin since 2015

On June 3, Berkshire Hathaway’s stock, BRK.A, experienced a dramatic but brief drop due to a technical glitch on the New York Stock Exchange (NYSE). The glitch caused Berkshire shares to appear to have fallen by nearly 100%, prompting the NYSE to halt trading in several high-profile stocks to correct the issue.

Source: X

Near the close of trading, the NYSE announced it would promptly cancel the erroneous trades that resulted from the earlier technical glitch. Nonetheless, this whole episode has brought the market’s attention to Berkshire Hathaway’s stock gross underperformance against Bitcoin (BTC) over the past decade—without any glitch.

Berkshire Hathaway is down nearly 99% versus Bitcoin

Berkshire Hathaway’s stock has plummeted by nearly 100% in value compared to Bitcoin since 2015—from about 1,000 BTC to 9.15 BTC.

BRK.A versus BTC/USD weekly performance chart. Source: TradingView

Interestingly, BTC’s performance against BRK.A and its top stock holdings starkly contrast with Berkshire Hathaway owner Warren Buffett’s critical view of Bitcoin, which he once famously described as “rat poison squared.”

According to results from the Nakamoto Portfolio simulator, incorporating even just 1% Bitcoin into Berkshire Hathaway’s existing portfolio, with its top stock holdings including Apple, Bank of America, and American Express, could have boosted returns from 214% to 240% on a five-year adjusted timeframe.

Source: Nakamoto Portfolio

Meanwhile, allocating 5-10% of the portfolio to Bitcoin could have achieved impressive returns of 328-410% for Warren Buffett in the same period.

Source: X

Bitcoin more valuable than Berkshire, Meta

Buffett’s resilience toward Bitcoin has not stopped the cryptocurrency from becoming one of the most valued assets worldwide.

As of June 4, Bitcoin’s net market capitalization was around $1.36 trillion, which makes it the world’s ninth-largest asset by valuation. Interestingly, BTC is ahead of Meta Platforms and Berkshire Hathaway, whose market cap are $1.20 billion and $899.36 million.

Top assets and firms by market cap worldwide. Source: CompaniesMarketCap.com

Bitcoin’s valuation will likely increase in the coming months and years as it gains traction as an alternative safe haven to gold, which currently holds a market cap of $15.8 trillion.

Related: Bitcoin volatility plunges below Tesla, Nvidia stocks amid $100K price prediction

For instance, the price of gold, like Berkshire Hathaway stock, has dropped over 99% versus Bitcoin since 2015.

XAU/USD versus BTC/USD monthly performance chart. Source: TradingView

According to veteran trader Peter Brandt, Bitcoin will likely grow 230% to reach a new record high of 100 ounces of gold per BTC. In doing so, the cryptocurrency may jump above silver’s market cap of $1.68 trillion next.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

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