The rise in corporate bitcoin purchases could lead to significant price increases for the cryptocurrency, according to a new report by NYDIG. Public companies adding bitcoin to their balance sheets has been a growing trend, and this shift may be a key factor in pushing bitcoin prices to new heights.
In its latest analysis, NYDIG employed a 10x “money multiplier” model, suggesting that each dollar spent by public companies on bitcoin could drive the cryptocurrency’s price up by an estimated $42,000. This indicates that the market could see large-scale price movements as companies continue to acquire bitcoin.
The report examined several companies, including Strategy (MSTR), Metaplanet (3350), Twenty One (CEP), and Semler Scientific (SMLR), evaluating how their bitcoin acquisitions affected their market value. These companies, which are raising capital to buy more bitcoin, could create significant upward pressure on the asset’s price as they expand their holdings.
According to NYDIG’s findings, bitcoin’s price could rise by as much as 44% from its current level of $96,000, making it an attractive asset for institutional investors. This comes as other markets remain volatile, further driving institutional interest in the cryptocurrency.
Currently, publicly traded firms hold 3.63% of the total bitcoin supply, with Strategy controlling the largest share. When including private companies and government reserves, these entities collectively control about 7.48% of the total bitcoin supply, based on BitcoinTreasuries data.
With the growing accumulation of bitcoin by corporations and the potential for government involvement in holding bitcoin, demand for the digital asset could increase substantially, pushing prices higher in the years to come.
