Bitcoin Treasury Firms’ Issuance Potential Could Significantly Boost Prices
Research from NYDIG indicates that public companies holding bitcoin have significant capacity to influence the market due to potential share issuance.
Key points include:
- Companies could leverage high equity valuations to raise funds and acquire more bitcoin.
- This action may lead to a projected price increase of $42,000 for bitcoin, representing a 44% rise from current prices around $96,000.
- The launch of Twenty One, a dedicated bitcoin accumulation vehicle, emphasizes this trend, having already secured a substantial BTC position.
- Cantor Equity Partners, a SPAC partner of Twenty One, has outperformed the S&P 500 by over 347% since the announcement.
- 69 public companies collectively hold approximately $69.6 billion in bitcoin, with their stock premiums potentially funding further purchases.
- This creates a feedback loop where equity issuance leads to increased BTC buying, raising both bitcoin and company share values.
Cipolaro notes that this "dry powder" from issuance capacity could significantly impact bitcoin's price. The increasing institutional interest reflects a transition in capital markets towards bitcoin exposure via balance sheets rather than solely through ETF flows.