Bitcoin (BTC) Overtakes Tesla Market Cap
After Tesla’s $1.5 billion Bitcoin (BTC) purchase announcement yesterday the overall market cap of the leading digital asset has now overtaken the electric car giant’s.
After news leaked of the $1.5 billion acquisition, Bitcoin rocketed from $39,397 to a new all-time high of $47,725.
The Bitcoin market cap rose a staggering 17.85% taking it from $733.5 billion to $888.9 billion, ironically helping it overtake Tesla into 7th place, whose market cap rose slightly to $818 billion.
Elon Musk And Tesla Rock The World
After a few weeks of speculation, Elon Musk finally put a chunk of his company’s balance sheet into Bitcoin. And some size it was.
MicroStrategy started the institutional snowball last year when it first announced it was adopting a Bitcoin standard for its Treasury Reserves.
Jack Dorsey’s Square Inc. quickly followed, which led PayPal to speed up its Bitcoin play, and then insurance giant MassMutual invested $100 million, little under 0.05% of its balance sheet into Bitcoin.
MicroStrategy now holds more value in Bitcoin than any other asset on its balance sheet, and many say MassMutual played it conservatively investing $100 million.
Many were predicting Tesla to be the first “giant” to use some of its balance sheet to buy Bitcoin, but the size of the move shocked everybody.
Most Bitcoiners were expecting the likes of Tesla and other giant corporations to put up to 5% of their holdings into Bitcoin. According to estimations, however, Tesla’s Bitcoin play equals about 15% of the firm’s balance sheet.
According to the SEC filing, Tesla says it might acquire more over time, and also ‘begin accepting Bitcoin as a form of payment for our products in the near future, subject to applicable laws and initially on a limited basis, which we may or may not liquidate upon receipt.’
Elon Musk doesn’t do things ordinary, but 15% of such a huge company is a massive shot in the arm for the Bitcoin market.
Added that Tesla will begin accepting payment in Bitcoin, it is arguably the biggest single news since Satoshi launched Bitcoin back in 2009.
Tencent And Google Next?
While it’s no competition, and Elon Musk and Tesla will obviously benefit from Bitcoin’s rise, next on the list is Chinese giant Tencent in 6th place.
At around $911 billion, the Bitcoin price will need to crack $49,000 for it to overtake the Chinese Internet giant.
After that there’s search engine giant Google’s company Alphabet. With a market cap of $1.415 trillion, Bitcoin would need to see a price of around $76,000 to strip Google of a top 5 place.
Apple is the biggest institution with a market cap of almost $2.3 trillion. So for Bitcoin to overtake every institution, the Bitcoin price would have to reach around $123,000.
The irony is that the companies Bitcoin is vying for market cap supremacy will be the ones that help it displace them.