As is known, Microstrategy has shifted almost all of its cash reserves into Bitcoin. What if the top 10 NASDAQ companies did the same? A calculation example.
Ever since Tesla’s entry into Bitcoin, the question has arisen what happens if the rest of the richest American tech companies, i.e. the NASDAQ top 10, do the same as the car manufacturer. We therefore took a look at the balance sheets of the ten largest NASDAQ corporations to see how much Bitcoin Apple and Co. could buy with their cash reserve.
With a market capitalization of over $ 2.1 trillion, Apple is the clear leader in the NASDAQ. In its current quarterly report, Apple states a cash position (cash and cash equivalents) of around USD 36 billion. If Apple were to do the same to MicroStrategy and convert most of its cash reserves into BTC, a Bitcoin rate of USD 45,000 would add up to around 800,000 BTC.
With now 14.2 billion US dollars, the IT giant has a little less cash left for Rares than Apple. Nevertheless, with the current Bitcoin rate, Microsoft could snatch 1.48 percent – 311,111 Bitcoin – of the total amount of digital gold in circulation.
Amazon is undoubtedly one of the biggest beneficiaries of the corona crisis – after all, the king of online retail is immune to lockdowns. The strong year 2020 brought Amazon a bulging postage fund. With its cash reserve of more than USD 42 billion, Amazon could currently buy 933,333 Bitcoin. That is just under 4.44 percent of all BTC that will ever exist.
The Google umbrella company Alphabet could, if it wanted, secure a good piece of the Bitcoin pie with its cash reserve alone. If Google were to convert its 17.5 billion USD into BTC, that would correspond to 1.79 percent of the total supply of Bitcoin.
The Facebook share has been able to recover since the Corona crash in March 2020. Facebook is currently trading at 220 euros, around ten percent above the level a year ago. According to the latest quarterly report, the cash reserves of the social media giant are around 17.57 billion US dollars. Expressed in Bitcoin, that’s about 377,777 BTC or 1.79 percent of the total requirement.
Tesla has already shifted $ 1.5 billion into Bitcoin. With 43,000 BTC, the e-car manufacturer now holds 0.2 percent of all BTC that are ever “mined”. This means that Tesla holds the most BTC among NASDAQ companies according to MicroStrategy (71,079 BTC). Tesla could significantly expand its BTC investment – the money would at least be available. If Elon Musk were to park Tesla’s USD 19 billion cash fortune in Bitcoin, the 0.2 percent would be joined by another 0.44 percent. Expressed in absolute numbers: Tesla could currently afford 91,904 BTC.
Nvidia will not present its Q4 2020 figures until February 24th. The last official figures on the cash assets of the technology group come from the quarterly report for Q3 2020. According to this, Nvidia has a cash reserve of 2.251 billion US dollars. At the current Bitcoin rate, this would correspond to around 48,888 units.
PayPal made a significant contribution to the bull market by announcing its Bitcoin integration. Since the payment service provider has enabled its US customers to buy and sell Bitcoin and other crypto currencies, PayPal has been buying massive amounts of Bitcoin in order to back up its offer with the corresponding liquidity. Paypal has not yet proclaimed BTC as a reserve asset. If PayPal decided to reallocate its cash reserve of around 4.8 billion USD into BTC, that would correspond to 106,666 BTC – about 0.5 percent of the Bitcoin supply.
Netflix is also one of the winners of the crisis in 2020. The global lockdown has played into the hands of the streaming provider for obvious reasons. Netflix’s cash reserve increased accordingly from $ 5 billion (Q4 2019) to $ 8.2 billion. Should Netflix come up with the idea of hodln Bitcoin instead of dollars, the streaming market leader could buy 182,000 BTC with it.
Companies already hold 6 percent of all BTC
It is unlikely that the top 10 NASDAQ companies mentioned above will follow suit MicroStrategy and park almost all of their cash reserves in Bitcoin. However, the “Corporate Bitcoin Standard” is a very realistic scenario. According to the website Bitcointreasuries.org, over 6 percent of all BTC is already on wallets that belong to either a company or an ETF-like investment product. Above all, the Bitcoin Trust from Grayscale should be emphasized. Meanwhile Grayscale “hodlt” 649,130 BTC – over 3 percent of the total supply.