Michael Saylor Urges Apple to Buy Bitcoin Amid Disappointing Share Buyback Results

Apple should consider buying Bitcoin as part of its capital allocation strategy, says MicroStrategy Executive Chairman Michael Saylor, responding to recent criticism of the tech giant's stock buyback program.

In a June 10 post on X (formerly Twitter), Saylor declared, “Apple should buy Bitcoin,” as a direct response to CNBC’s Jim Cramer, who highlighted the underwhelming results of Apple’s ongoing share repurchase efforts.

Source: Michael Saylor

“The Apple buyback is not working right now,” Cramer wrote. “The company can leave it to earn a lot or it can take some and integrate. It is not a badge of dishonor. It just isn’t.”

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Apple’s $110 Billion Buyback Faces Market Pressure

Apple, currently the fourth-largest company by market capitalization, announced a $110 billion stock buyback in May 2024 as part of its ongoing strategy to reduce outstanding shares and return value to investors. However, that plan has seen limited results so far, with Apple stock dropping over 17% year-to-date.

Source: TradingView

By contrast, Bitcoin has gained more than 17% over the same period, according to TradingView data. Looking at the longer-term performance, Bitcoin has skyrocketed over 1,000% in the past five years, compared to a 137% rise in Apple shares.

Saylor’s proposal suggests that Bitcoin exposure could enhance Apple’s capital efficiency, serving as a potential hedge against inflation and a way to strengthen returns in the face of lackluster equity performance.

Bitcoin Adoption Grows Among Corporations Worldwide

Saylor’s call for Bitcoin integration at Apple comes amid a growing trend of corporate Bitcoin adoption around the globe.

• GameStop, the U.S. video game and electronics retailer, made headlines on May 28 after investing $513 million to acquire 4,710 BTC using funds from a $1.3 billion convertible notes offering.

• In Asia, Japanese firm Metaplanet became the eighth-largest public company Bitcoin holder on June 2. The company announced plans to raise $5.4 billion to expand its BTC treasury, which triggered a 12% surge in its share price during Monday trading.

• Over in Europe, The Blockchain Group, based in Paris, revealed plans to raise more than $340 million for its Bitcoin reserves. This follows a recent purchase of 1,471 BTC worth over $154 million, as reported by Cointelegraph.

Source: GameStop

Read More: Michael Saylor’s Strategy to Raise $250M via Preferred Stock Offering for More Bitcoin Purchases

Bitcoin ETFs Regain Momentum

Meanwhile, spot Bitcoin ETFs saw a strong rebound after a brief two-day sell-off, recording over $386 million in net positive inflows on June 9, according to data from Farside Investors. This suggests renewed institutional interest in Bitcoin and reflects the growing acceptance of crypto assets in traditional investment vehicles.

Conclusion: Will Apple Join the Bitcoin Bandwagon?

Michael Saylor has long been a vocal proponent of Bitcoin as a strategic asset for corporations. With Bitcoin significantly outperforming traditional equities in recent years, and major firms globally adding it to their balance sheets, Apple could be the next tech giant to consider a move into crypto.

Bitcoin ETF flows, USD, million. Source: Farside Investors

As investor scrutiny of Apple’s capital deployment grows, embracing Bitcoin may present an innovative path to revitalizing its financial strategy — and perhaps even inspire a new wave of corporate Bitcoin adoption.

Read More: U.S. Spot Bitcoin ETFs Extend 10-Day Inflow Streak Amid Improving Macroeconomic Conditions