Earlier this morning, Tesla Motors announced that it has devoted a portion of its balance sheet to Bitcoin. Not even two hours passed, and the market value of the crypto assets briefly exceeded that of the vehicle manufacturer itself.
For a short period today, Bitcoin (BTC) held a market cap of $ 807,869,728,188 according to data from AssetDash, beating Tesla at $ 807,829,441,685. Bitcoin ranked seventh on the list after the announcement, with both Tesla and BTC comfortably above Facebook’s market cap, $ 765 billion at the time.
The big volatility happened this morning as the news spread, as Tesla bought a total of $ 1.5 billion in bitcoin, to be kept as an investment and store of value for its excess money. After the announcement, Bitcoin price rose to a new all-time high of more than $ 44,000 before easing back to $ 43,202. Tesla’s stock price is up over 2% as the markets open, and is $ 871.43 at press time.
Bloomberg Intelligence strategist Mike McGlone recently Predicted That Tesla investment could be the catalyst to push Bitcoin’s market value to over a trillion dollars for the first time. Cryptocurrency total market cap reached this value early last month with the price of BTC, Ether (ETH) and many altcoins rising.