Palantir Technologies (PLTR) Hits Record High of $109.60 on Feb. 6.This remarkable 356% gain over the past year far exceeded Bitcoin’s 121% rise, with BTC currently trading at $96,887. Investors are now debating whether Palantir can sustain its momentum and continue outperforming Bitcoin.
Founded in 2003, Palantir has deep ties to U.S. government agencies, including the Department of Defense and the CIA. In addition to its government contracts, the company provides commercial solutions focused on optimizing supply chain logistics and operational planning.
Two Palantir Co-Founders Are Strong Bitcoin Advocates
Palantir was co-founded by entrepreneur and investor Peter Thiel, whose venture capital firm, Founders Fund, provided early funding. Thiel, also a co-founder of PayPal and the first outside investor in Facebook (META), has been a public Bitcoin advocate since 2017. In a CNBC interview, he argued that the market had underestimated Bitcoin’s potential as a digital store of value. Another co-founder, Joe Lonsdale, has also voiced strong support for cryptocurrencies. In January 2024, Lonsdale stated that Bitcoin and Ethereum (ETH), now trading at $2,680, are likely to be used by AI-driven financial agents.
Palantir’s recent stock surge is largely driven by the rapid expansion of its artificial intelligence platform. The company reported a 36% year-over-year increase in fourth-quarter revenue, a 45% operational margin, and a cash reserve increase to $5.2 billion. Since Jan. 29, Palantir shares have risen 36%, pushing its market capitalization to a record $245 billion. As AI investment gains momentum, some investors see Palantir as an attractive opportunity, especially compared to tech giants like Microsoft ($3.1 trillion market cap) and Google ($2.3 trillion). However, Palantir’s fourth-quarter EBITDA stood at just $380 million—roughly equivalent to a single day of revenue for Google’s parent company, Alphabet—making it 98.8% lower.
Palantir’s Valuation Shares Key Similarities with Bitcoin
Though Palantir and Bitcoin seem unrelated, both assets share a highly speculative valuation. Palantir trades at a massive 162x EBITDA multiple, compared to Google’s 19.5x and Microsoft’s 21.5x. This suggests investors expect Palantir’s earnings to grow nearly eightfold in the coming years, though its current rally may also be fueled by FOMO (fear of missing out).
Historically, Palantir has seen extreme volatility. In early 2022, its stock plunged from $26.80 to $7—a staggering 74% drop, even greater than Bitcoin’s losses during the same period. Yet, despite being considered a high-risk asset, Bitcoin currently has a 60-day volatility of 44%, compared to Palantir’s 86%, meaning Bitcoin’s daily price fluctuations are lower.
As Palantir’s AI-driven momentum continues, investors will closely watch whether its valuation holds or if it faces a sharp correction—just like Bitcoin has experienced in past cycles.
Conclusion
Whether or not one believes Bitcoin should be valued as a scarce commodity rather than for its payment and data processing capabilities, Palantir’s valuation shows that investors are treating the stock market as a store of value, as its multiples are far above the typical range for the tech sector.
Ultimately, both assets compete for the same investment capital, but only time will tell whether Palantir should be priced at 12.8% of Bitcoin’s $1.92 trillion market capitalization.
FAQs
Why is Palantir’s stock surging while Bitcoin is slumping?
Palantir’s stock has surged due to strong earnings, growth in its AI platform, and investor enthusiasm. Meanwhile, Bitcoin’s price has faced short-term headwinds despite its long-term upward trajectory.
What is the connection between Palantir and Bitcoin?
Several Palantir co-founders, including Peter Thiel and Joe Lonsdale, are vocal Bitcoin supporters. Additionally, Palantir’s valuation dynamics and volatility patterns have similarities to Bitcoin.
Is Palantir overvalued compared to other tech giants?
Palantir trades at a significantly higher EBITDA multiple than companies like Google and Microsoft, suggesting that its valuation is largely driven by speculation rather than earnings.
I am Toby Rothschild, Co-Founder of Spearmint and author at Coinography, and a strategist focused on advancing Web3 innovation, digital ecosystems, and the future of decentralized technology. I combine product thinking, creative leadership, and deep interest in emerging trends to help shape how individuals and organizations interact with the next generation of digital systems.
My work centers on understanding how blockchain, AI, and digital identity are reshaping global industries. At Spearmint, I help lead the direction of initiatives that bring clarity, structure, and meaningful user experiences to complex technological environments. I focus on bridging vision with execution, ensuring that innovation remains practical, scalable, and aligned with long-term growth.
As an author at Coinography, I create insights that translate fast-moving Web3 developments into clear, useful narratives. I explore topics such as decentralized governance, digital identity, creator economies, token models, protocol design, and the shifting cultural patterns around emerging technology. My aim is to make digital transformation more understandable and approachable for a wider audience.
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