Chart of the Week: '10x Money Multiplier' for Bitcoin Could Take Wall Street by Storm
Chart of the Week: '10x Money Multiplier' for Bitcoin Could Take Wall Street by Storm
Publicly traded firms relentlessly buying bitcoin for their balance sheet could result in 'significant buy pressure.'
This Week's Highlight: Projection of Bitcoin's Potential '10x Money Multiplier' Catching Wall Street's Attention
A trend emerges as more publicly traded companies continue to acquire bitcoin for their corporate treasury, potentially creating a surge in buying pressure.
Following the footsteps of Michael Saylor, many public firms have embraced the strategy of holding bitcoin on their balance sheets. This move has not only boosted their stock prices but also brought significant gains to their shareholders.
NYDIG, in a recent research report, proposed a concept called the "money multiplier," indicating that if these companies were to invest new capital into bitcoin, it could lead to a substantial increase in its price. The analysis suggests a potential rise of approximately $42,000 per bitcoin if this strategy is widely implemented.
The study conducted by NYDIG focused on firms like Strategy (MSTR), Metaplanet (3350), Twenty One (CEP), and Semler Scientific (SMLR) to estimate the impact of investing in bitcoin on their equity valuations. By issuing shares at current market prices to purchase more bitcoin, these companies could amass significant funds.
If this forecast materializes, it could mean an impressive 44% surge from the current bitcoin price of $96,000. Such outcomes might capture the attention of Wall Street investors amidst the ongoing market volatility and uncertainty.
