1 Idea for What Apple Should Do With Its $132 Billion in Liquidity

Thanks to the unthinkable popularity of products similar the iPhone and Apple Watch, arsenic good arsenic its heavy seat of services, Apple (NASDAQ: AAPL) has go 1 of the astir palmy companies of each time. Over the past 3 decades, its stock terms has accrued by astir 910-fold  (as of Jan. 23).

This concern operates from a presumption of immense fiscal power, supported by nett income that totaled $112 cardinal successful its fiscal 2025 (which ended Sept. 27). Apple's profits find their mode to its balance sheet; astatine past report, it had $132 cardinal successful cash, currency equivalents, and marketable securities connected the books.

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Here's 1 superb thought for what Apple could bash with each that liquidity.

Like its aged selling slogan, it's clip for Apple to "Think Different." The user exertion endeavor should earnestly see adding Bitcoin (CRYPTO: BTC) to its equilibrium sheet. If it did so, it would travel successful the footsteps of Strategy, which pioneered the Bitcoin treasury institution model. Shares of that company, formerly known arsenic MicroStrategy, are up by 1,110% since it archetypal bought Bitcoin successful August 2020 and rapidly pivoted the halfway of its concern exemplary to crypto investing.

CEO Tim Cook and his absorption squad wouldn't request to spell all-in close away. Perhaps the extremity successful twelvemonth 1 mightiness beryllium to allocate 10% of the existent $132 cardinal of liquidity to Bitcoin.

Bitcoin's terms has soared by much than 22,000% successful the past decade. Even if 1 forecasts a much tenable 25% compound annualized maturation complaint implicit the adjacent 10 years, Apple could crook a $13.2 cardinal concern made present into $122.9 cardinal by aboriginal 2036. If the institution uses a dollar-cost averaging strategy to steadily put 10% of the escaped currency flow it generates each 4th into the integer asset, that ending fig would get importantly larger -- assuming that Bitcoin, presently down astir 30% from its peak, resumes its humanities climb.

Apple should be actively thinking about this idea, arsenic it could perchance payment its shareholders. The concern would probably gain a much amended instrumentality from funds put into Bitcoin than what its currency equivalents and marketable securities presently yield. Apple has in caller times struggled to boost its gross growth. If this strategy turned retired to be successful, it could assistance bolster marketplace sentiment toward the company.