Apple should invest some of its huge cash reserves in Bitcoin, Published today the portfolio manager of Toroso Investments, Dan weiskopf, On the ETF Think Tank website.
The ETF chief strategist’s call follows in the footsteps of the MicroStrategy CEO. Michael SaylorAnd the former hedge fund manager of Goldman Sachs, Raoul Pal, Who They predicted that Apple would invest heavily in Bitcoin over the next few years.
Saylor retweeted Weiskopf’s article and supported it with the comment that the large technology company could generate $ 100 billion in market capitalization by incorporating Bitcoin into its products and adding it to its inventory.
#Manzana could generate shareholder value of $ 100 billion or more if integrated #Bitcoin in Apple Pay, built a secure crypto wallet into the iPhone and started buying #BTC with their Treasury Reserves. h / t @ETFProfessor https://t.co/zqDNuFskeY
– Michael Saylor (@michael_saylor) November 11, 2020
With a market cap of over $ 2 trillion Apple is the most valuable company in the world The company has nearly $ 192 billion in cash, according to an earnings report released Oct. 29.
Weiskopf argued that investing between $ 10 billion and $ 20 billion in Bitcoin would be more profitable in the long run than Apple’s plan to proceed with “risky and expensive” share buybacks.. He said it would also be a prudent hedge against inflation.
“I understand that certain institutional shareholders may be affected by the Bitcoin purchase, but we have to work with the math and the odds in the face of share buybacks,” he wrote.
“Whether you view Bitcoin as a hedge against inflation, speculation or an alternative asset class, it is a technological innovation that Apple has in a unique position to access and deliver to its shareholders.”
Much larger than Bitcoin in size and market capitalization, Weiskopf argues that Apple can help Bitcoin achieve a real level of mainstream adoption that both will benefit from.
“Apple management has the unique opportunity to think outside the box. The company’s loyal ecosystem, technological know-how, and financial strength mean that relatively low digital risk could balance it with the most disruptive technology trend since the internet. “
Furthermore, The price of BTC would have to increase by 545%Around $ 100,000 per BTC to get closer to Apple’s current market cap of $ 2.03 trillion.