The price recovery of virtually all assets in the cryptocurrency sector in the first half of February saw Bitcoin reclaim the $715 billion market capitalization. With that, the oldest and largest crypto surpassed the market valuation of one of the world’s largest investment companies in the world, Warren Buffet’s Berkshire Hathaway.
Key takeaways:
- The shares of Berkshire Hathaway, trading on NYSE under the ticker symbol BRK.A, have been changing hands in a very tight range since the start of February. Bitcoin, on the other hand, has gained more than 13% in the same time period, and outperformed S&P 500 and NASDAQ 100 by roughly 14% and 15%, respectively.
- According to data curated by CompaniesMarketCap, Berkshire Hathaway is the 7th largest firm in the world, commanding a $714 billion market capitalization. The impressive valuation puts Buffet’s conglomerate ahead of tech giants like Meta (formerly Facebook), Nvidia, and Tencent.
- The American billionaire investor has long held the position that Bitcoin lacks intrinsic value. “If you buy something like Bitcoin or some cryptocurrency, you don’t have anything that is producing anything. You’re just hoping the next guy pays more,” Buffet famously told Yahoo Finance in an interview back in 2018.
- Bitcoin would need to gain an additional 13% (which would raise its price to just below $50,000) to overtake electric vehicle manufacturer Tesla, which is currently the sixth-largest publicly traded company in the world, with a market cap of $933 billion.
- To break into the top 5, Bitcoin would have to flip retail and cloud service provider giant Amazon, which boasts a $1.618 trillion valuation at the time of this writing. For that to happen, Bitcoin would have to surpass its previous ATH set last November and reach a price tag of $83,500.
- Let’s take our thought experiment to its logical conclusion. Apple is currently the largest company globally, commanding a $2.808 trillion market cap. From its current price point of $43,500, Bitcoin would need to gain an additional 245% to overtake the iPhone maker, which would increase its value to $150,000, a tall order indeed.
