According to NYDIG, Bitcoin Treasury Firms’ Cash Reserves Could Push Prices Up Substantially

Bitcoin’s price could see a major rally driven by the untapped reserves held by public companies with substantial bitcoin holdings, according to recent analysis from NYDIG.

In the report, Greg Cipolaro, NYDIG’s global head of research, outlines how these companies’ “dry powder”—capital that could be used for further bitcoin acquisitions—could play a significant role in pushing the cryptocurrency’s price higher. By leveraging their strong equity valuations, these firms may raise additional funds to buy more bitcoin, resulting in increased demand and upward price pressure.

Cipolaro estimates that this cycle of capital raising and bitcoin buying could drive the price of bitcoin up by approximately $42,000, a 44% gain from its current price of $96,000. The model suggests that each new round of acquisitions by these companies could amplify the price of bitcoin, creating a feedback loop that supports the market’s growth.

The report points to growing institutional interest, with companies like Twenty One—a dedicated bitcoin investment vehicle supported by Tether, Bitfinex, and Cantor Fitzgerald—paving the way for more firms to focus on acquiring bitcoin. Twenty One is specifically designed to accumulate bitcoin, signaling a shift toward more companies choosing to hold bitcoin rather than using it in operations.

Currently, over 69 public companies hold approximately $69.6 billion worth of bitcoin. Cipolaro suggests that these companies are in a strong position to use their equity premiums to raise capital and buy more bitcoin, potentially triggering a price surge as a result of increasing demand.

“The availability of ‘dry powder’ among bitcoin-holding firms is a powerful factor that could push bitcoin’s price to new heights,” Cipolaro concludes.

As the number of companies adding bitcoin to their balance sheets continues to grow, the influence of these treasury firms on the broader bitcoin market is expected to increase, providing new opportunities for price appreciation.