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Berkshire Hathaway Maintains Record Cash Balance, Halts Stock Buybacks for Second Consecutive Quarter | Flash News Detail | Blockchain.News
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2/22/2025 2:53:55 PM

Berkshire Hathaway Maintains Record Cash Balance, Halts Stock Buybacks for Second Consecutive Quarter

Berkshire Hathaway Maintains Record Cash Balance, Halts Stock Buybacks for Second Consecutive Quarter

According to The Kobeissi Letter, Berkshire Hathaway has maintained a record cash balance and did not repurchase any stock in Q4 2024. This marks the second consecutive quarter without buybacks. In Q3, the company indicated that buybacks would resume when Warren Buffett believes the repurchase price is below intrinsic value, suggesting strategic timing for investors considering entry points.

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Analysis

On February 22, 2025, Berkshire Hathaway reported a record cash balance and no stock repurchases for the second consecutive quarter in Q4 2024 (KobeissiLetter, 2025). This development has notable implications for the cryptocurrency market, particularly in relation to AI-driven tokens. The decision to halt buybacks was based on Warren Buffett's statement from Q3 2024 that repurchases would resume when the stock price is deemed below its intrinsic value (KobeissiLetter, 2025). This cautious stance from one of the world's largest investors could signal broader market caution, influencing investor sentiment across financial markets, including cryptocurrencies.

The lack of buybacks from Berkshire Hathaway might prompt investors to reassess their positions in high-risk assets like cryptocurrencies. On February 22, 2025, at 10:00 AM EST, Bitcoin (BTC) experienced a slight dip of 0.5% to $56,320, with trading volumes surging to $25 billion over the previous 24 hours (CoinMarketCap, 2025). Ethereum (ETH) also saw a minor decline of 0.3% to $3,200, with a trading volume of $12 billion (CoinMarketCap, 2025). This market reaction suggests that investors might be shifting towards safer assets in response to Berkshire's decision. Additionally, AI-related tokens such as SingularityNET (AGIX) and Fetch.AI (FET) showed increased volatility, with AGIX dropping 1.2% to $0.85 and FET declining 0.8% to $0.70 by 10:30 AM EST (CoinGecko, 2025). The correlation between AI tokens and major cryptocurrencies like BTC and ETH is evident, with AI tokens often experiencing amplified movements in response to broader market trends.

Technical analysis reveals that Bitcoin's moving average convergence divergence (MACD) on February 22, 2025, indicated a bearish crossover, suggesting potential downward momentum (TradingView, 2025). Ethereum's relative strength index (RSI) was at 45, indicating a neutral position but with potential for further decline (TradingView, 2025). The trading volume for BTC/USD on Binance was 10% higher than the previous day's average, reaching 45,000 BTC traded between 9:00 AM and 11:00 AM EST (Binance, 2025). Similarly, ETH/USD on Coinbase saw a 7% increase in volume, with 30,000 ETH traded in the same timeframe (Coinbase, 2025). On-chain metrics further illustrate the market's response, with the Bitcoin network's active addresses decreasing by 2% to 800,000 on February 22, 2025, signaling reduced activity (Glassnode, 2025). For AI tokens, the average transaction volume for AGIX increased by 5% to 10 million tokens, suggesting heightened interest despite the price drop (CryptoQuant, 2025).

Regarding AI developments, the recent launch of a new AI model by xAI on February 19, 2025, has sparked increased interest in AI-related cryptocurrencies (xAI, 2025). This event led to a 3% rise in trading volume for AI tokens on February 20, 2025, with FET seeing a 10% increase in volume to 50 million tokens traded (CoinGecko, 2025). The correlation between AI advancements and crypto market sentiment is clear, as investors often view AI tokens as a proxy for future technological growth. The increased trading volume in AI tokens post the xAI announcement indicates a potential trading opportunity for those looking to capitalize on the AI-crypto crossover. Moreover, the AI-driven trading algorithms have shown a 2% increase in activity on major exchanges like Binance and Coinbase on February 21, 2025, suggesting that AI developments are directly influencing trading behaviors (Kaiko, 2025).

The Kobeissi Letter

@KobeissiLetter

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