Toroso Investments’ fund manager Dan Weiskopf reported earlier today on the ETF Think Tank website that Apple should spend a fraction of its large cash holdings in Bitcoin.
The site’s chief ETF planner’s forecast is in line with that of MicroStrategy CEO Michael Saylor and ex Goldman Sachs hedge fund chief Raoul Pal, both of whom anticipated Apple to acquire Bitcoin on a big scale in the forthcoming years.
By incorporating Bitcoin in their product offerings and adding to their reserves, the tech behemoth could record a $100 billion increase in market capitalization, according to a tweet by Saylor that provided the link to an article by Weiskopf.
#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
Apple (AAPL), which has a market cap of over $2 trillion, is the most valuable listed company in the world. The enterprise has a cash reserve of $192 billion, as per the recent earnings report published on October 29.
Weiskopf opined that holding Bitcoin worth $10 billion to $20 billion could turn out to be profitable in the long-term than Apple’s strategy of pursuing “risky and expensive” stock repurchases. He stated that such a tactic will also act as a hedge against inflation.
He wrote:
“I get that certain institutional shareholders might get twisted up by the purchase of Bitcoin, but we need to work through the math and the opportunity versus the stock buyback.”
“Whether you see Bitcoin as a hedge against inflation, 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.”
As per Weiskopf, Apple, which is considerably bigger than Bitcoin in terms of market cap and popularity, can aid the latter to attain full-fledged mainstream adoption and benefit from the same.
“Apple’s management has a unique opportunity to think outside the box. The company’s loyal ecosystem, technological expertise and financial strength means that a relatively small risk towards digital could align it with the most disruptive technology trend since the internet.”
Interestingly, Bitcoin needs to appreciate by 545% (~$100,000) to reach Apple’s market cap of $2.03 trillion.
