Adopting Michael Saylor’s strategy to buy for the balance sheet has been clearly abolished among many publicly traded companies, significantly strengthening stock prices and shareholders.
But what does that mean for the future of Bitcoin prices? Nydig’s study calculates the numbers and the results are impressive.
“Applying a tenfold “money multiplier,” a rule of thumb that reflects the historical impact of new capital on Bitcoin’s market capitalization, and splitting it by the total supply of Bitcoin, we arrive at a rough estimate of the impact on potential prices.
To reach this conclusion, NYDIG analysts reviewed ratings for Strategy (MSTR), Metaplanet (3350), Twenty One (CEP), and Semler Scientific (SMLR) cumulative equity since adopting the Bitcoin purchase strategy. This allowed analysts to get an overview of the amounts they could theoretically raise by issuing shares at the current stock price to buy more Bitcoin.
If this analysis is realized, the predicted price will rise by almost 44% from the current spot price of $96,000 per Bitcoin. When capitalized, Wall Street money managers wouldn’t mind displaying this PNL chart to clients, especially given the current volatility and uncertainty of the market.
“The implications are clear. This ‘dry powder’ in the form of issuance capabilities can have a major impact on the price of Bitcoin,” said Nydig Research.
The limited supply of Bitcoin is also a good foreshadowing for analysis. Publicly available companies already have 3.63% of their total Bitcoin supply, and the majority of these coins are held by strategy. Adding private companies and government holdings, the total is 7.48%, according to Bitcointreasuries data.
If the US government finds a “budget neutral strategy to acquire additional bitcoins” for its strategic Bitcoin reserve, demand could increase in the near future.
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