Bitcoin Treasury Firms' 'Dry Powder' Could Drive Prices Up Significantly: NYDIG
The issuing power of companies holding bitcoins could amount to tens of billions of dollars in market purchasing power.
Author: Helen Brown | Edited by: Stephen Alpher Updated: May 6, 2025, 12:19 PM Published: May 5, 2025, 2:42 AM
What you need to know:
- NYDIG's Greg Cipolaro argues that companies involved in bitcoin treasury assets have significant “dry powder” in the form of equity issuance opportunities that could drive prices higher.
- His analysis shows that if this capital is used to purchase additional bitcoins, it could increase the value of bitcoin by $42,000.
- The emergence of firms focused entirely on the innovation sector, such as Twenty One, highlights how market enthusiasm and structural advantages can amplify this potential impact.
Public companies holding bitcoin could be a powerful market catalyst: untapped issuance potential that could significantly increase the price of bitcoin (BTC), according to new research from NYDIG.
In a report published this week, Greg Cipolaro, the firm’s global head of research, points to “dry powder” in the form of equity issuance potential among bitcoin’s treasurer firms. If these firms use their elevated stock valuations to raise new funds and acquire more bitcoin, it could spark a significant rally in the market.
Cipolaro uses a back-of-the-envelope model to estimate the impact: Using a 10x “money multiplier” — a historical rule of thumb showing how capital inflows have historically affected Bitcoin’s market cap — he projects a potential price increase of $42,000 per coin. That would represent a roughly 44% increase from current levels of around $96,000.
This market dynamic has taken on new meaning with the launch of Twenty One, a Bitcoin savings vehicle backed by Tether, Bitfinex, and Cantor Fitzgerald. Unlike other companies that have integrated Bitcoin into broader business models, Twenty One exists solely to acquire and store Bitcoin and has already taken a significant position in BTC.
Its SPAC partner, Cantor Equity Partners, has outperformed the S&P 500 by more than 347% since the deal was announced.
There are 69 public companies in the sector that hold about $69.6 billion worth of bitcoin. Cipolaro’s analysis suggests that their current stock premiums over net asset value could provide funding for even more purchases — creating a de facto feedback loop where stock issuance drives up the purchase of BTC, which in turn drives up the value of both bitcoin and the issuer’s stock.
“The message is clear,” Cipolaro notes. “This ‘dry powder’ of emission capabilities could have a significant positive impact on the price of Bitcoin.”
Whether these companies activate their capabilities or not, growing interest from institutional investors and the performance of bitcoin-focused stocks signal a shift in the capital markets' approach to bitcoin-related risks – across balance sheets, not just through ETF flows.
Disclaimer: Portions of this article were generated by AI tools and reviewed by our editorial team for
Источник
