“What’s good for the goose is good for the gander.” Could this principle also apply to investment strategies?
In recent times, several companies have turned to Bitcoin to enhance shareholder value, especially when they feel their growth has plateaued. While experts have noted various risks, this approach has gained traction largely because of companies like MicroStrategy and Metaplanet. Their stock prices have surged dramatically—4,000% and 2,000%, respectively—after they began including Bitcoin on their balance sheets.
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Why is Apple involved in this conversation? That’s a point raised by Michael Saylor, who recently launched a committee focused on MicroStrategy’s investment strategies.
Saylor stated, “Apple should buy Bitcoin,” during a post on X. This comment was prompted by remarks made by CNBC host Jim Cramer.
Cramer mentioned that Apple’s stock buyback program isn’t yielding the expected results, and he insists that this situation is not a reflection of any failure.
Typically, companies buy back shares to instill confidence in their business and return value to shareholders. Recently, Apple reported second-quarter results and announced a $100 billion buyback, which caught analysts off guard. Stock prices often rise following such announcements, but this time, as Cramer emphasized, that wasn’t the case.
After the buyback announcement, Apple’s stock rose slightly—about 3%—but it has dipped 19% since the year began. There are a few contributing factors here. For instance, CEO Tim Cook indicated the company owed $900 million at the time. The announced buyback also represents a $10 billion decrease from the previous year’s plan, hinting at a desire to conserve cash amid an uncertain economic climate.
In contrast, Bitcoin has seen a 16% increase since May. MicroStrategy’s stock has remained stable since then but is up 31% for the year.
I find it interesting, though, whether or not Apple will take Saylor’s advice to heart. Back in 2021, Cook acknowledged owning cryptocurrencies himself, saying that diversifying one’s portfolio with assets like Bitcoin and Ethereum makes sense. Still, he clarified that Apple wasn’t considering cryptocurrency at the time.
He mentioned, “I didn’t invest in crypto because, honestly, I didn’t view buying Apple stocks as a way into it.”
Apple is just the latest company Saylor has suggested should consider this investment route. During a recent conference, he encouraged Microsoft to add Bitcoin to their balance sheet as well, arguing that doing so would enhance their attractiveness to investors.
This overall situation presents an intriguing perspective on investment strategies and shareholder engagement.
