Is Apple About To Announce A $5 Billion Bitcoin Purchase? One Bank Thinks So: RBC. While the bigger business is likely in the exchange of assets, we think the firm could also fund its own initiative by adding a small amount of Bitcoin (or another crypto asset) to its balance sheet. If we assume that the firm can add $1B to its balance sheet (only ~4-5 days of cash flow) we think the price of the underlying asset would then go up in a substantial manner. Looking at it from another angle, if we assume that the cost of developing a crypto wallet/exchange on the Apple ecosystem would cost $500M, t
they could synthetically pay for the development cost by acquiring the underlying asset. For example, if the firm purchased $5B 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.
