Bitcoin-holding public companies may be sitting on a powerful market catalyst: unused issuing capacity that could meaningfully increase Bitcoin’s (BTC) price, according to new research from new.
In a report published this week, Greg Cipolaro, the company’s global research manager, points to “dry powder” in the form of stock issuing potential among Bitcoin Treasury companies. If these companies benefit from their elevated stock values to raise new funds and buy more bitcoin, it can trigger a significant upward feature on the market.
Cipolaro uses a back-of-the-envelope model to estimate the impact: Use of a 10x “money multiplier”-a historical rule of thumb that describes how capital flow has historically affected Bitcoin’s market capital-he projects a potential $ 42,000 per year KOIN PRICE REVIEW. It would mark an approx. 44% jump from current levels near $ 96,000.
This market dynamic has gained a new urgent speed following the launch of Twenty One, a Bitcoin accumulation vehicle supported by Tether, BitFinex and Cantor Fitzgerald. Unlike other companies that have folded Bitcoin into wider business models, there are only twenty and twenty to acquire and keep Bitcoin and have already been grafted with a significant BTC position.
Its SPAC partner, Cantor Equity Partners, has surpassed the S&P 500 by over 347%since the agreement was announced.
Across the sector, 69 public companies hold around $ 69.6 billion Bitcoin. Cipolaro’s analysis suggests that their current stock prizes over the net value could finance even more purchases -effectively creating a feedback loop where stock is burning BTC purchases, which increases the value of both Bitcoin and the issuer’s shares.
“The implication is clear,” writes Cipolaro. “This” dry powder “in the form of issuing capacity can have a significant upward effect on Bitcoin’s price.”
Whether these companies are dragging in the trigger, the growing interest of institutions and the benefit of Bitcoin-Forward shares signals a shift in how the capital markets approach Bitcoin exposure through balance instead of just ETF streams.
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