Bitcoin Treasury Firms’ Untapped Equity Raises Hopes for BTC Price Surge, NYDIG Reports
A new report from NYDIG highlights that publicly traded corporate treasury firms holding Bitcoin possess substantial ’dry powder’—unused equity issuance capacity—which could be used to purchase more BTC and potentially catalyze significant price increases. Greg Cipolaro, NYDIG’s global head of research, estimates that if these companies take advantage of high share prices to raise capital and buy additional bitcoin, BTC’s price could jump by up to $42,000 per coin, representing an approximate 44% rise from current levels near $96,000. The report underscores the growing trend of companies emphasizing direct bitcoin exposure on their balance sheets, beyond just ETF investments. It points to the recent market entry of Twenty One—a bitcoin-focused firm backed by Tether, Bitfinex, and Cantor Fitzgerald—as intensifying this trend, with 69 public companies currently holding about $69.6 billion in BTC. This mechanism creates a feedback loop: issuing equity leads to BTC purchases, boosting both bitcoin prices and the value of the issuer’s shares. For crypto traders, this scenario signals a bullish outlook, highlighting increased institutional demand and the potential for major upward price action if firms leverage their issuance capacity aggressively.
Bullish
The news underscores that publicly traded Bitcoin treasury firms have significant unused equity issuance capacity, which could be leveraged to purchase more bitcoin. This potential buying pressure, estimated to add up to $42,000 to the current BTC price, suggests substantial upward momentum if companies capitalize on high share prices. The formation of dedicated bitcoin accumulation firms, growing institutional interest, and the creation of a positive feedback loop between equity and BTC price all point toward a bullish short- and long-term outlook for bitcoin. Increased institutional demand is likely to drive further price appreciation, boosting both market sentiment and trader activity.