Bitcoin (BTC) is overtaking Nvidia, the major American company, in terms of market capitalization amidst a meteoric bull run in the cryptocurrency market.
It has been reported that as the Bitcoin price briefly crossed the $18,000 threshold on November 18, Bitcoin’s market cap surged above $336 billion, outstripping the market cap of Nvidia, one of the world’s most well-known manufacturers of graphics cards.
According to data from Macro Trends, on November 17, Nvidia’s shares closed at $330.7 billion, as the close follows a significant decline from a $358.7 billion threshold recorded on November 2.
The report said that Bitcoin’s new market cap milestone against Nvidia comes amidst both Bitcoin and Nvidia seeing major growth in 2020.
However, Bitcoin has surged by nearly 400% this year, skyrocketing from below $4,000 in January 2020 to over $18,000 in November. Nvidia’s market cap surged more than 100% this year, up from around $150 billion to over $350 billion.
According to Nvidia’s financial results released in August 2020, the company saw record revenue of $3.87 billion in the second quarter of 2020, up 50% from 2019.
It has been analyzed that Bitcoin and Nvidia have some close ties, as the latter is providing one of the world’s best-performing GPU cards for mining cryptocurrencies like Bitcoin. As previously reported, Nvidia might be facing some issues due to its crypto mining-related activity.
Thus, in May 2020, a class action accused Nvidia of misrepresenting over $1 billion in sales to downplay the firm’s reliance on sales to crypto miners.