Chart of the Week: Bitcoin's '10x Money Multiplier' Could Conquer Wall Street
Public companies actively investing in bitcoin to increase their reserves could create “significant buying pressure.”
Author: Aoyon Ashraf | Edited by: Francisco Rodriguez May 4, 2025, 2:00 PM
What to consider:
- Michael Saylor's approach of acquiring Bitcoin to boost balance sheets has significantly boosted the stock prices and market caps of many public companies.
- NYDIG research suggests that a “10x monetary multiple” could push Bitcoin’s price to $42,000 given current market conditions.
- If this happens, it would represent a 44% increase in Bitcoin's current price, highlighting the potential impact of corporate Bitcoin purchases.
Michael Saylor's method of acquiring stock to boost balance sheets has apparently found favor among many public companies, significantly increasing their market value and shareholder numbers.
But what does this mean for the future of Bitcoin's price? NYDIG Research looked at the data, and the results were impressive.
“If we apply a 10x ‘money multiplier’ — a rule of thumb showing the historical impact of new capital on Bitcoin’s market capitalization — and divide by the total supply of Bitcoin, we get a rough estimate of the potential price impact: an increase of nearly $42,000 per Bitcoin,” NYDIG’s research report states.
To arrive at this conclusion, NYDIG analysts looked at the overall valuation of Strategy (MSTR), Metaplanet (3350), Twenty One (CEP), and Semler Scientific (SMLR) stocks since implementing their Bitcoin buying strategy. This gave the analysts a rough idea of how much money they could theoretically raise by issuing shares at current prices to buy additional Bitcoin.
If this analysis is correct, the implied price would represent a nearly 44% increase from the current spot price of $96,000 per Bitcoin. If this is confirmed, Wall Street money managers will likely jump at the chance to present this PnL chart to their clients, especially given the current volatility and uncertainty in the market.
“The conclusion is clear: this ‘dry powder’ in the form of emission capacity can have a significant upward impact on the price of Bitcoin,” NYDIG Research noted.
Bitcoin's limited supply is also a good sign to analyze. Public companies already control 3.63% of the total supply of Bitcoin, with Strategy owning a significant portion of those coins. When you include private companies and governments,
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