Michael Saylor: Apple Stock Would Double If It Bought Bitcoin

Microstrategy’s CEO, Micheal Saylor, has claimed that the stock prices of tech giant Apple would be double if it held Bitcoin. He tweeted this in response to comments made by Apple CEO Tim Cook in an interview at the Dealbook Online summit, who said he had exposure to cryptocurrency.

Tim Cook said he thought that it was “reasonable” to own crypto assets as part of a diversified investment portfolio.

Apple Won’t Be Getting Any Crypto Exposure Soon

Apple’s CEO also mentioned that his company currently has no plans to purchase crypto or accept it as a payment medium despite his exposure to virtual assets. This contrasts with Michal Saylor and his company Microstrategy, who are huge Bitcoin supporters and investors. Saylor’s Bitcoin holdings of over 17,000 BTC is now worth over $1 billion. On the other hand, Microstrategy holds 114,042 BTC on its balance sheet, which is worth over $7 billion at its current price. 

The CEO, who has long been a strong BTC proponent, has continually seized the opportunity to express his belief in the economic integrity of the digital asset.

Reacting to Tim Cook’s revelation, several prominent names took to Twitter to share their thoughts. Binance CEO, Changpeng Zhao, sarcastically suggested it was “probably not a big deal”.

Tyler Winklevoss took a comical approach and asked when Tim intended to hold Dogecoin. He was probably alluding to the interest from another CEO (Elon Musk), in the meme coin.

Others simply saw this as a pointer to the growing acceptance of cryptocurrency among the wealthy, such as market analyst Michael van de Poppe.

Apple shares have largely remained unmoved by the news at the opening of the markets today, with the current price of $150.75 holding steady. The stock prices rose steadily over the past year, from $106 in September 2020 to a high of $156 in September 2021. Its current price represents a 30% increase over the specified period. Bitcoin, however, has grown by over 450% in the same time, as seen in the chart below.

Michael Saylor’s claim regarding Apple would place its valuation at $5 trillion as its current value is around $2.5 trillion. This is would be a new record for company valuations. Although plausible, the enormity of Apple — which was the first trillion-dollar company in the US— could make this a difficult feat to achieve.

Furthermore, it can be argued that doubling the market valuation may be feasible for smaller companies. Their relatively smaller market capitalizations offer ample growth room, which would make the doubling effect of BTC adoption possible.

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Tim Cook Addresses Phone Addiction

Tim Cook recently made headlines for raising concerns over the need to tackle the mental health crisis from mobile phone addiction. The problems have seen Apple throw its support behind the self-care app Shine. Cook hopes to help foster increased creativity while preventing “mindless scrolling” on Apple’s products.

Benedict Evans, consultant and mobile analyst, questioned Apple’s stance. He maintained that about 50% of the company’s App Store earnings come from the continued use of addictive games on the store by 0.5% of users.

On-chain Indicators Supports Bitcoin’s Bullish Narrative

The inflow of institutional investors and entrepreneurs is no news anymore within the crypto scene. Meanwhile, Bitcoin’s recent run-up to a new all-time high has continued to reinforce the positive sentiments amongst crypto investors. Several on-chain metrics support this bullish sentiment.

According to a Glassnode report, a combination of strong supply dynamics, low network activity, and mining network recovery looks positive for Bitcoin over the coming weeks.

Accordingly, the report suggests that net exchange flows continue to show stunning domination by outflows. Over the past week, the daily net withdrawals from exchanges have risen to above 5,000 BTC, as highlighted in the chart. This development indicates holders’ inclination to move coins into cold storage, thereby reinforcing the existing supply shock in the market.

Consequently, the aggregate BTC balance on exchanges has fallen to a multi-year low of 12.9% of its circulating supply. With the current euphoria levels building up, exchange reserves may continue to dwindle, causing another potential price rally. 

Do you see Bitcoin holdings doubling the valuation of Apple stocks? Let us know in the comments below.