Bitcoin’s ‘10x Money Multiplier’ May Revolutionize Wall Street
Recent strategies implemented by publicly traded firms, particularly Michael Saylor’s approach of acquiring bitcoin for their balance sheets, have led to notable increases in stock values.
Key Insights:
- The firm NYDIG projects that their proposed ‘10x money multiplier’ could result in a per-bitcoin increase of $42,000 based on current conditions.
- Such a rise would mean a possible 44% surge from the current price of $96,000 per bitcoin, showcasing the ramifications of institutional bitcoin buying.
According to NYDIG’s analysis, firms like MicroStrategy and others have tapped into significant potential for both stock and bitcoin price appreciation by adopting similar strategies.
“By applying a ‘10x money multiplier’—which reflects historic effects of new investment on bitcoin’s overall market cap—we estimate a substantial impact on bitcoin’s price from corporate purchases,” NYDIG reported.
Further, current figures indicate that publicly traded companies hold approximately 3.63% of bitcoin’s total supply, which, along with shared holdings, represents about 7.48% of the entire supply, according to BitcoinTreasuries data.
This growing interest may amplify demand, especially if additional strategies are developed by the government for acquiring bitcoin as part of its strategic reserve.
Read more: Cantor Skyrockets 130% as Traders FOMO Into the Stock on Bitcoin SPAC Frenzy
