RBC: Apple Inc. Could Add Bitcoin to its Treasury Next Following Tesla and MicroStrategy

advertisement

Apple Inc, the mobile technology giant could follow in the footsteps of Tesla and Microstrategy to add Bitcoin to its treasury as per RBC Capital Markets. Apple became the first company to achieve $1 trillion treasury value two years back, and are actively looking to expand its range of products and services. RBC Markets analyst Mitch Steves in a note to the clients wrote that Apple could very well develop a crypto custody wallet and run a crypto exchange. He wrote,

“The wallet initiative appears to be a clear multi-billion dollar opportunity for the firm (potential for well over $40 billion in annual revenue with limited R&D), ”

New for subscribers: Apple may be the next notable company to buy bitcoin, RBC says. Check out @CNBCPro today. https://t.co/8OircwbfFd

— CNBC (@CNBC) February 8, 2021

The ongoing printing spree by the Federal Reserve owing to the multiple stimulus packages released by the government to offer relief to citizens during the pandemic has taken a toll on US Dollar value. As a result, institutions are looking for a long-term treasury reserve asset that could offer a better return than the US Dollar

Tesla Inc making the biggest single bitcoin purchase worth $1.5 billion and MicroStrategy’s Bitcoin holding already doubling in value would make other institutions consider bitcoin for sure. Apple Inc with one of the highest treasury values could well become the next institution to convert a portion of their treasury cash to bitcoin.

How Bitcoin has Outclassed Gold as The Growing Choice of Inflation Hedge?

Institutions over the years have invested in gold, government bonds, and Hedge Funds during troubled financial times, however, even before the pandemic hit the world the financial markets were looking very shaky and on the verge of collapse quite similar to 2008. The government bonds are being offered at negative interest rates while hedge funds are holding high-risk positions.

Even Gold seems to be losing its luster in the eyes of institutions as its price continues to tumble. US Dollar used to be another hedge currency for many but due to high inflation rates and nearly $9 trillion printed by Feds this year alone, has made Bitcoin a growing choice.