Chart of the Week: Bitcoin’s ‘10x Money Multiplier’ Set to Make Waves on Wall Street

Public companies’ growing interest in bitcoin is starting to have a noticeable impact on the digital asset’s price. A new report from NYDIG suggests that the trend of publicly traded firms purchasing bitcoin for their balance sheets could push the cryptocurrency’s price significantly higher.

Using a 10x “money multiplier” model, NYDIG forecasts that every new dollar invested by companies in bitcoin could potentially increase its price by $42,000. This finding highlights how institutional buying pressure can influence market dynamics, especially when large-scale corporate investments are involved.

The study analyzed firms like Strategy (MSTR), Metaplanet (3350), Twenty One (CEP), and Semler Scientific (SMLR), examining how their bitcoin purchases have impacted their market capitalizations. With these companies generating capital through stock issuances to fund bitcoin acquisitions, the ripple effect on bitcoin’s price could be substantial.

Based on this analysis, the price of bitcoin could rise by up to 44%, potentially taking the cryptocurrency to new highs. This price increase would likely attract further attention from institutional investors, especially as other asset classes face uncertainty.

Currently, publicly traded companies hold around 3.63% of the total bitcoin supply, with Strategy being the largest holder. When private companies and government entities are included, these groups control approximately 7.48% of the total supply, according to data from BitcoinTreasuries.

As the trend of corporate bitcoin accumulation continues, and with potential government interest in adding bitcoin to strategic reserves, the price of the cryptocurrency could continue to rise, making it an increasingly attractive investment.