Apple Can Buy 145k Bitcoin With Just 1% Of Its $191 Billion of Dollars Held in Cash
Apple has a total of $191.83 billion cash on hand, down from quarter third of 2020, when it was $193.8 billion. Apple is known for having one of the largest cash piles among the companies.
At Bitcoin’s current price of $13,300, if the tech giant Apple, hypothetically, decides to buy as much BTC as it can with the cash on hand, it can gobble up 14,423,308 BTC.
Currently, 18,529,856 BTC is circulating in the cryptocurrency market.
This represents 88.24% of Bitcoin's total 21 million supply but doesn’t include millions of coins lost forever.
Apple is the biggest asset by market cap of $1.9 trillion, while Bitcoin is just 13% of this with a $246 billion market cap at 21st place.
Follow in the footsteps of MicroStrategy
When it comes to other tech giants, Microsoft had $137.98 billion at the end of its fiscal first-quarter. In comparison, Google and Amazon had $121.08 billion and $71.77 billion, respectively, at the end of the second quarter.
With so much money sitting in cash and short-term investments at these big companies, it has captured the crypto community's attention, especially following publicly listed MicroStrategy and Square replacing a portion of that with Bitcoin.
“Apple’s cash is decreasing in value. Perhaps they should follow in the footsteps of MicroStrategy and test the waters with even 1% percent in BTC,” wrote one trader.
Even with just 1% of its investment, Apple can buy 144,233 BTC.
Microsoft has the same problem @MicroStrategy had, this is its balance sheet. @Microsoft holds $123 billion in "short-term investments" (aka credit risk) rather than dollars because the dollar is a melting ice cube; it is taking credit risk when it really just needs bitcoin. pic.twitter.com/ucasyZXe5z
— Parker Lewis (@parkeralewis) October 23, 2020
MicroStrategy was the first one, and since then, others have come forward to announce Bitcoin as a reserve asset as a hedge against the debasing US dollar. MicroStrategy CEO Micahel Saylor actually revealed this week that he personally owns 17,732 BTC and has been running a full node of Bitcoin Core version 0.20.1 for over a month now.
Bitcoin is at the early stages still, and in 2020 it sees increasing adoption with PayPal, JPMorgan, and billionaire investor Paul Tudor Jones all feeling its effect.
Compared to gold’s trillion market cap, this digital gold is just starting and has a long way to go.
“We've talked about $5T of cash sitting in public company corporate treasuries. What hasn't been talked about is the $8.5T sitting in sovereign wealth funds, i.e., ‘the wealth of nations' Their exposure to bitcoin is zero, their optimal portfolio will require it,” said on-chain analyst Willy Woo adding to the hopium.