Publicly traded bitcoin treasury firms may be sitting on a potent catalyst that could ignite the bitcoin market, according to a fresh analysis from NYDIG. In a report unveiled this week, Greg Cipolaro, NYDIG’s global head of research, highlights the “dry powder” in the form of untapped share issuance capacity among these firms. If companies leverage their high equity valuations to raise funds and snap up more bitcoin, it could trigger a significant market upswing.
A Multiplier Effect?
The crux of Cipolaro’s argument is a back-of-the-envelope calculation: using a 10x “money multiplier” — a somewhat historical measure of how inflows historically boost bitcoin’s market cap — he envisions a potential $42,000 boost per bitcoin. That’s a hefty 44% leap from today’s prices hovering near $96,000. This valuation isn’t just theoretical; it’s a glimpse into how strategic capital allocation might reshape market dynamics. As explored in our recent Chart of the Week: ’10x Money Multiplier’ for Bitcoin Could Take Wall Street by Storm, this multiplier effect could indeed revolutionize market perceptions.
What’s fueling this urgency? Enter Twenty One, a bitcoin accumulation entity backed by heavyweights Tether, Bitfinex, and Cantor Fitzgerald. Unlike firms that integrate bitcoin into wider business strategies, Twenty One is laser-focused on acquiring and holding bitcoin. Already, it’s bolstered by a considerable BTC stash. Its SPAC partner, Cantor Equity Partners, has also been making waves, outperforming the S&P 500 by a staggering 347% since their collaboration was announced.
Treasury Firms: A New Market Force
In the broader spectrum, 69 public companies collectively hold approximately $69.6 billion in bitcoin. Cipolaro’s insights suggest that their stock premiums over net asset value could finance additional acquisitions, creating a feedback loop: equity issuance funds BTC purchases, which then inflate both bitcoin’s value and the issuer’s stock price. “The implication is clear,” Cipolaro asserts, noting that this “dry powder” could significantly elevate bitcoin prices.
But here’s the catch: whether these firms will take the plunge remains to be seen. Yet, the mounting interest from institutional players and the robust performance of bitcoin-centric stocks underscore a shift in capital markets’ approach to bitcoin exposure. Companies are increasingly favoring balance sheets over ETF flows—a nuanced strategy reflecting evolving investment philosophies. This follows a pattern of institutional adoption, which we detailed in Strategy’s $84B Bitcoin Expansion Plan Backed by Wall Street Analysts.
Historical Context and Future Implications
Historically, bitcoin’s price dynamics have been sensitive to institutional actions and regulatory shifts. The last few years have seen a transition from skepticism to cautious optimism among traditional financial institutions. The emergence of dedicated bitcoin vehicles, like Twenty One, represents a bold step in this ongoing evolution. It raises pertinent questions: Can these firms sustain momentum? Will the speculative firepower of “dry powder” materialize into tangible market movements?
As we look towards the latter half of 2025, the crypto landscape appears poised for intriguing developments. Institutional adoption and strategic capital allocations might continue to shape the narrative—though, as always, uncertainties linger. Will the projected $42,000 surge become a reality, or will market forces chart a different course?
In the end, the evolving saga of bitcoin treasury firms and their untapped potential remains a compelling chapter in the cryptocurrency story. The market’s response to these dynamics will undoubtedly be watched with bated breath, as stakeholders weigh the risks and rewards of a rapidly shifting financial frontier.
Source
This article is based on: Bitcoin Treasury Firms’ ‘Dry Powder’ Could Push Prices Up Significantly: NYDIG
Further Reading
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
