Bitcoin Market Cap Overtakes Warren Buffett-Led Berkshire Hathaway

YEREVAN (CoinChapter.com) — The overall market capitalization of Bitcoin (BTC) has crossed the $800 billion mark, overtaking that of Warren Buffett’s management investment firm Berkshire Hathaway. The development is striking, especially considering the investment mogul’s well-documented skepticism towards cryptocurrencies. 

Warren Buffett’s Firm Trails Bitcoin

The recent surge in Bitcoin’s price saw the leading cryptocurrency surpass the $42,000 mark. In 2023, the BTC price has surged over 150%. The recent surge now puts its market cap at $818 billion, ahead of Berkshire Hathaway’s $777 billion. 

According to Infinite Market Cap data, Bitcoin now sits below Meta Platforms (Facebook) at the No. 10 position in the list of assets led by Gold, Apple, and Microsoft. 

Berkshire Hathaway’s Chairman Warren Buffett has been a vocal critic of cryptocurrency. He once referred to Bitcoin as “rat poison squared” and dismissed it as an unproductive asset with “no unique value at all”. 

Back in 2014, he predicted that Bitcoin would not be around in 10-20 years. Moreover, he advised people to avoid investing in BTC, calling it a “mirage.”

“Stay away from it. It’s a mirage, basically. The idea that it has some huge intrinsic value is just a joke in my view,” 

he told CNBC’s Squawk Box. 

His long-time partner and Vice Chairman of Berkshire Hathaway, Charlie Munger, who recently passed away at almost 100 years old, has also been critical.

Just like Buffett, he saw no use for Bitcoin and even admitted that he wished that cryptocurrency had “never been invented.” A strong crypto critic described Bitcoin as “disgusting and contrary to the interests of civilization”

These criticisms of cryptocurrency from the two bosses of Berkshire Hathaway starkly contrast with the recent financial performance of Bitcoin (BTC). 

It also demonstrates a considerable shift in investor sentiment. Bitcoin, despite strong criticism from big names in the world of investing, is doing as well as established financial giants. 

Berkshire Hathaway stock price falls as Bitcoin Market Cap surges

Adding to the irony of this situation is the recent performance of Berkshire Hathaway’s stock. 

Last month, Berkshire Hathaway disclosed a considerable loss of nearly $13 billion in the third quarter (Q3), amid the falling paper value of its investments.

The conglomerate’s losses were equivalent to $8,824 per Class A share, for the quarter. This, according to reports, represents a sizable increase compared to the $2.8 billion loss, or $1,907 per Class A share, reported in Q3 of 2022.

The Berkshire Hathaway stock price has also faced a slight drawback after rallying around 20% between January and September in 2023. 

Having crossed the $560 on Sep. 19, the Warren Buffett-led investment giant’s stock price fell to $503 on Oct. 27. Over the last week, it has attempted to recover. While writing, it trades at a little over $537. 

Meanwhile, Berkshire Hathaway’s hostile attitude towards Bitcoin has not stopped the leading crypto from overtaking it in terms of overall market cap. Maybe it sends a message to skeptics?