Bitcoin’s ‘10x Money Multiplier’ Might Spark a Revolution on Wall Street – Chart of the Week

The trend of publicly listed companies acquiring bitcoin for their balance sheets, initiated by figures like Michael Saylor, has gained significant momentum. This strategic move, aimed at boosting corporate value, is now showing signs of influencing bitcoin’s price in a big way.

In a recent study by NYDIG, the growing wave of corporate bitcoin purchases is projected to create substantial upward pressure on the cryptocurrency’s price. The firm’s research used a 10x “money multiplier” model, which suggests that for every dollar invested by a company in bitcoin, the cryptocurrency’s market value could surge by up to $42,000.

NYDIG’s analysis focused on major publicly traded companies such as Strategy (MSTR), Metaplanet (3350), Twenty One (CEP), and Semler Scientific (SMLR), examining how their bitcoin purchases have impacted their market valuations. By calculating how much capital these firms could generate through stock issuance, the research suggests that the inflow of funds could substantially lift bitcoin’s price.

Based on these calculations, bitcoin’s price could rise by as much as 44% from its current value of $96,000, a scenario that would likely grab the attention of Wall Street investors, especially given the ongoing market fluctuations and uncertainty.

The research further reveals that publicly traded companies currently hold 3.63% of the total bitcoin supply, with Strategy being the largest holder. When factoring in private company and government reserves, these entities collectively control 7.48% of bitcoin’s total supply, according to data from BitcoinTreasuries.

Looking ahead, if the U.S. government adopts policies that favor bitcoin acquisition for its strategic reserves, the demand could increase even further, pushing prices to new heights.

In conclusion, the growing trend of corporate bitcoin accumulation, combined with the limited supply of the cryptocurrency, may create significant buying pressure, potentially driving bitcoin’s value to new levels in the coming years.