Bitcoin’s 10-Fold Wealth Generator May Revolutionize Wall Street
Implementing Michael Saylor’s approach of accumulating bitcoin for corporate balance sheets has gained significant traction among numerous publicly traded companies, leading to notable increases in their stock values and benefits for investors.
What implications does this have for bitcoin’s future market value? Researchers conducted an analysis that yielded noteworthy findings.
By applying a tenfold “money multiplier”—reflecting the historical effects of fresh capital on bitcoin’s market value—and dividing it by bitcoin’s total supply, we can estimate an increase of nearly $42,000 per bitcoin, according to their analysis.
The assessment considered the cumulative equity valuations of notable firms that have adopted this bitcoin purchasing strategy. This analysis provided insights into the potential funds these companies could theoretically generate through share issues at current market valuations to acquire additional bitcoin.
If these predictions hold true, this would represent approximately a 44% rise from the current market value of $96,000 per bitcoin. Should these projections be realized, it is likely that investment managers on Wall Street would be eager to share favorable profit-and-loss outcomes with their clients, especially amidst current market fluctuations and uncertainties.
The researchers highlighted that the capacity to issue new shares represents significant additional resources that could drive up bitcoin’s price.
Furthermore, bitcoin’s finite supply supports this assessment. Publicly traded companies currently hold approximately 3.63% of the total bitcoin supply, with most of it concentrated in a single firm. When factoring in private organizations and government holdings, the total ownership rises to about 7.48% based on recent data.
Future demand for bitcoin could see an uptick if the U.S. government identifies feasible “budget-neutral” ways to enhance its strategic bitcoin reserves.
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