Apple should allocate a portion of its substantial cash reserves to bitcoin, according to Dan Weiskopf, a portfolio manager at Toroso Investments.
What if $AAPL‘s next acquisition is…#bitcoin? Here’s why it makes more sense to dabble in $BTC than buying back shares >> https://t.co/zqDNuFskeY via @ETFProfessor
— Stoyan Bojinov (@SBojinov) November 11, 2020
In his view, by integrating bitcoin into Apple products and investing in the world’s first cryptocurrency, Apple’s market capitalization could rise by $100 billion.
Weiskopf believes that a $10-20 billion investment would yield more value for the company than a ‘risky and expensive’ share buyback. Moreover, bitcoin is a sensible hedge against inflation.
“Regardless of whether you view bitcoin as a hedge against inflation, a speculative asset or an alternative asset class, it is a technological innovation that Apple can access and offer to its shareholders,” the expert stressed.
He added that in this way the world’s most valuable company could help drive truly broad adoption of digital gold.
Michael Saylor, MicroStrategy’s CEO, shared Weiskopf’s article in the ETF Think Tank blog.
#Apple could generate $100 billion or more in shareholder value if they integrated #Bitcoin into Apple Pay, built a secure crypto wallet into the iPhone, and began buying #BTC with their Treasury Reserves. h/t @ETFProfessor https://t.co/zqDNuFskeY
— Michael Saylor (@michael_saylor) November 11, 2020
MicroStrategy acquired 38,250 BTC for $425 million. The company intends to store digital gold for 100 years.
According to Yahoo Finance, Apple Inc.’s market capitalization (AAPL) stands at $2.027 trillion. Bitcoin’s market cap sits at about $301 billion, according to CoinGecko.
Earlier, Tudor Investment founder Paul Tudor Jones compared investments in bitcoin with investments in early Apple or Google.
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