Thanks to the incredible popularity of products like the iPhone and Apple Watch, as well as its deep bench of services, Apple (AAPL 0.56%) has become one of the most successful companies of all time. Over the past three decades, its share price has increased by about 910-fold (as of Jan. 23).
This business operates from a position of immense financial power, supported by net income that totaled $112 billion in its fiscal 2025 (which ended Sept. 27). Apple's profits find their way to its balance sheet; at last report, it had $132 billion in cash, cash equivalents, and marketable securities on the books.
Here's one brilliant idea for what Apple could do with all that liquidity.
Image source: Getty Images.
It's time to "Think Different"
Like its old marketing slogan, it's time for Apple to "Think Different." The consumer technology enterprise should seriously consider adding Bitcoin (BTC 0.21%) to its balance sheet. If it did so, it would follow in the footsteps of Strategy, which pioneered the Bitcoin treasury company model. Shares of that company, formerly known as MicroStrategy, are up by 1,110% since it first bought Bitcoin in August 2020 and rapidly pivoted the center of its business model to crypto investing.
CEO Tim Cook and his management team wouldn't need to go all-in right away. Perhaps the goal in year one might be to allocate 10% of the current $132 billion of liquidity to Bitcoin.
Bitcoin's price has soared by more than 22,000% in the past decade. Even if one forecasts a more reasonable 25% compound annualized growth rate over the next 10 years, Apple could turn a $13.2 billion investment made now into $122.9 billion by early 2036. If the company uses a dollar-cost averaging strategy to steadily invest 10% of the free cash flow it generates each quarter into the digital asset, that ending figure would get significantly larger -- assuming that Bitcoin, currently down about 30% from its peak, resumes its historical climb.
Apple should be actively thinking about this idea, as it could potentially benefit its shareholders. The business would probably earn a much better return from funds put into Bitcoin than what its cash equivalents and marketable securities currently yield. Apple has in recent times struggled to boost its revenue growth. If this strategy turned out to be successful, it could help bolster market sentiment toward the company.
Plus, it would still have plenty of remaining capital to invest in its research and development efforts.
NASDAQ: AAPL
Key Data Points
Apple and Bitcoin probably won't happen anytime soon
In December 2024, shareholders of "Magnificent Seven" peer Microsoft voted against investing some of the software giant's assets in Bitcoin. Even for some of the most financially sound and competitively advantaged businesses on Earth, stepping into those waters is still viewed as off-limits behavior. This tells me that it might be a while until such a move is made on a grand scale.
Based on its long-term trajectory, Bitcoin's price in five or 10 years will be much higher. And with wider adoption of the crypto, the perception of it should evolve from a volatile, speculative asset into one that's not so risky. Maybe then the world's top crypto asset will win over corporate executives and show that it deserves a spot on any company's balance sheet.
