What It Will Take For A Bitcoin Treasury Company To Become 'The Berkshire Hathaway Of Bitcoin'

Bitwise strategist Jeff Park has weighed in on what it would take for a company to become “the Berkshire Hathaway of Bitcoin.”
Park has said financial leadership alone would not be enough for any firm to become the ideal Bitcoin treasury company.
Public corporations have become the dominant players in the Bitcoin market in recent months.

When it comes to shareholder value growth, few firms can hold a candle to Warren Buffett‘s Berkshire Hathaway BRK BRK.B)). Between 1965 and 2023, the company delivered a compound annual growth rate of nearly 20% to its shareholders, outperforming the S&P 500 by approximately 10%.

So, it makes sense that Strive Asset Management CEO Matt Cole last month cited Berkshire Hathaway when discussing the firm’s aspirations in the Bitcoin treasury company space.

“We’re going to be one of the major players in the space where I look at us as kind of the Berkshire Hathaway of Bitcoin Treasury companies,” he said at the time.

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Achieving this goal, however, will be no easy task.

"The Berkshire Hathaway of Bitcoin” would have to master three different return on equity strategies, said Top Bitwise strategist Jeff Park on Monday. These strategies include liability management, asset management and operating equity management.

According to Park, however, Bitcoin treasury firms in their current form are not taking advantage of more than one approach. He put MicroStrategy MSTR, The Blockchain Group and Metaplanet’s strategies under liability management. Strive and Twenty One’s efforts were classified under asset management, while Kindly MD’s KDLY efforts were placed under operating equity management.

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Meanwhile, Park said financial leadership alone would not be enough for a Bitcoin treasury company to become “the Berkshire Hathaway of Bitcoin.” After all, the Oracle of Omaha’s firm is not only recognized for its financial success but also its stabilizing role during times of distress.

So, in addition to mastering the outlined ROE strategies, Park said the ideal Bitcoin treasury company would need to build its “spiritual weight” by wholeheartedly supporting Bitcoin development and prioritizing the community over corporate interests.

“Bitcoin companies must embrace the same vision of classical liberalism as individuals, to pursue freedom, decentralization, and unity: principles that only open-source software can truly deliver, not the managerial politicians,” he said, adding that “the best corporate leaders will see that the real opportunity isn’t just in accumulating, but in becoming custodians of a future where individuals, not institutions, hold the keys.”

Public corporations have become the dominant players in the Bitcoin market in recent months. Bitwise said in April that these firms purchased 95,000 BTC in Q1 alone, more than half of the approximately 165,000 BTC expected to be mined this year.

And with the entry of players like Strive, Twenty One and Kindly MD into the space in recent weeks, the Bitcoin purchases look set to accelerate even more. Many expect that this demand will drive the asset’s price significantly higher. Bitwise, for example, has set a year-end price target of $200,000. Fundstrat has set a target of $250,000. VanEck has set a target of $180,000.

At last look, the asset is trading at over $106,000, up nearly 2% in the past 24 hours.

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