- Mitch Steves, analyst at RBC Capital Markets, thinks Apple should enter into the cryptocurrency market.
- The company should upgrade its Apple Wallet to a cryptocurrency exchange, he added.
- The report comes right after Tesla purchased $1.5 billion in BTC.
According to Mitch Steves, an analyst at RBC Capital Markets – one of the largest global investment banks – Apple should look into the cryptocurrency market. In a note to clients, the analyst said that Apple has a big opportunity in turning its Apple Wallet into a cryptocurrency exchange. However, the iPhone maker should also consider adding Bitcoin or other digital currencies to its balance sheet, Steves said. By doing so, it would attract even more users to the exchange and boost Bitcoin price.
For example, if the firm purchased $5 billion of bitcoin (20-25 days of cash flow), the price of the underlying asset would need to rise by 10% for the firm to fully fund the entire project in the first place. This is a solid value proposition in our view as the business would be funded without diluting any other projects at the firm.
In the past few months, several big companies like PayPal and Tesla have announced their support for Bitcoin by either purchasing it, accepting it, or even allowing customers to exchange it. Apple would immediately gain market share if it were to enter the industry and offer improved security, according to Steves.
This article was edited after its original release. The previous version was titled "Apple expected to follow Tesla’s steps and add Bitcoin to its balance sheet." It was changed to better reflect RBC opinion and provide more clarity.
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