Apple should invest some of its cash reserves in Bitcoin, says Dan Weiskopf
In an article backed by Michael Saylor, executive Dan Weiskopf outlined great ideas on how Apple can improve its results and support Bitcoin
Apple should invest a portion of its huge cash reserves in Bitcoin, Toroso Investments‘ portfolio manager Dan Weiskopf said today on the ETF Think Tank website.
The ETF lead strategist’s call follows in the footsteps of MicroStrategy CEO Michael Saylor and former Goldman Sachs hedge fund manager Raoul Pal, who predicted that Apple would make a large-scale investment in Bitcoin in the coming years.
MicroStrategy’s Bitcoin holdings appear to be paying out more than its business
Saylor retold and backed Weiskopf’s article with the comment that the major technology company could earn $100 billion in market capitalization by integrating Bitcoin with its products and adding it to its holdings.
With a market capitalization of more than $2 trillion, Apple is the most valuable company in the world and has nearly $192 billion in cash, according to a profit report released on Oct. 29.
Corporate giants may not follow MicroStrategy’s Bitcoin adoption game, explains Raoul Pal
Weiskopf made the case that an investment in Bitcoin of between $10 billion and $20 billion would be more profitable in the long term than Apple’s plan to continue with „risky and expensive“ share buybacks. He said it would also be a prudent hedge against inflation.
„I understand that certain institutional shareholders could be affected by the purchase of Bitcoin, but we have to work with the maths and timing of the share buybacks,“ he wrote.
„Whether you see Bitcoin as an inflation hedge, a speculation or an alternative asset class, it is a technological innovation that Apple is in a unique position to access and provide to its shareholders.
Being substantially larger in both scope and market capitalisation than Bitcoin, Weiskopf argues that Apple can help Bitcoin achieve real levels of widespread adoption, to the benefit of both.
„Apple management has a unique opportunity to think outside the box. The company’s loyal ecosystem, technological expertise and financial strength mean that a relatively small risk to digital could align it with the most disruptive technological trend since the Internet.
The creator of the Stock-to-Flow model claims that Bitcoin will reach USD 100,000 by December 2021
In addition, the price of BTC would have to increase by 545%, approximately $100,000 per BTC, to approach Apple’s current market capitalization of $2.03 billion.