Pfft. I'd mostly be upset by the awkward shape of the handle, but there's nothing wrong with the wood itself.
Thanks, I was referring only to the grain, no endorsement of the handles style or the hatchet itself

Yes it is horrible but mostly inconsequential in this case. There is very little curve to that particular handle so unintentional runout due to grain orientation is not a problem. Plus it's overly thick and is very short. There isn't much weight to a hatchet head either. All told you'd have to work hard to break it.
Pictured below is another perfectly horizontal grain 36" haft. You can readily see that runout at the curves is extreme. The first overstrike or prying motion performed with that handle and you'd be out scouting around for another one. Why take that chance?
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I will trust your judgement, as I can only see part of that handle. My point is that simply looking at the grain orientation at the butt end tells an incomplete story. I also think that if any strength or toughness is lost due to horizontal grain orientation alone, eg in a straight handle, it is not significant. I have a 30+ year old woodslasher db that has "horrible" grain and led a rough life, and it hasn't let me down yet.