Apple Stock Declines 17% Despite $110 Billion Buyback Bitcoin Surges 17% in Same Period

Apple, the world’s fourth-largest company, has recently faced challenges with its stock buyback program. The company announced a $110 billion buyback strategy in a May 2024 filing with the US Securities and Exchange Commission (SEC). The aim was to reduce outstanding shares and return value to investors. However, Apple’s stock has declined by more than 17% since the start of the year, leading to criticism from analysts like Jim Cramer, who stated that the buyback program is not currently effective.

In contrast, Bitcoin has shown significant gains. Over the same period, Bitcoin surged by over 17%, and in the past five years, it has increased by over 1,000%, compared to a 137% increase in Apple shares. This performance has caught the attention of Michael Saylor, the executive chairman of Strategy, who suggested that Apple should consider buying Bitcoin to address the shortcomings of its buyback program. Saylor views Bitcoin as a lucrative financial opportunity that could enhance Apple’s financial strategy.

Saylor’s proposal aligns with a growing trend among corporations adding Bitcoin to their balance sheets. For instance, US retailer GameStop recently made its first Bitcoin investment, acquiring 4,710 BTC for about $513 million. This move followed a $1.3 billion convertible notes offering. In Asia, Japanese investment company Metaplanet has become a leader in Bitcoin adoption, becoming the world’s eighth-largest corporate Bitcoin holder in June. Metaplanet’s shares soared over 12% after announcing plans to raise $5.4 billion to buy more Bitcoin.

Across Europe, Paris-based Blockchain Group has also announced plans to raise over $340 million for its Bitcoin treasury. This follows the firm’s acquisition of $68 million worth of Bitcoin, bringing its total holdings to 1,471 Bitcoin, or over $154 million. These developments highlight the increasing acceptance of Bitcoin as a valuable asset for corporate treasuries.

Bitcoin’s market strength is further evidenced by the performance of spot Bitcoin exchange-traded funds (ETFs). These ETFs staged a powerful comeback, shrugging off a two-day sell-off. On June 9 alone, these ETFs saw over $386 million in net positive inflows, indicating soaring investor confidence. The embrace of Bitcoin by corporate titans and the robust performance of ETFs underscore its vast potential as a financial asset.