"Money Multiplier" for Bitcoin: How Corporate Procurement Is Transforming the Wall Street Market

The concept of a money multiplier in the context of Bitcoin is spreading among institutional investors and corporate players, creating an effect that goes far beyond simply buying digital assets. The strategy, first popularized by Michael Saylor through MicroStrategy, has gained such momentum that it is changing the dynamics of the entire market.

Michael Saylor’s Strategy and the Money Multiplier Effect

The models of corporate accumulation of Bitcoin, which Michael Saylor implemented for the balance of shares, demonstrated an impressive result: shareholders not only received a balance in their portfolios, but also observed a significant increase in the value of shares of companies that chose this course. This phenomenon reflects the money multiplier in action, a phenomenon when new capital injection creates a multiplying effect on the total market capitalization.

The adoption of Saylor’s strategy has proven to be infectious among public companies. Strategy (MSTR), Metaplanet (3350), Twenty ONE (CEP), and Semler Scientific (SMLR) have all started accumulating Bitcoin as part of their treasury policies, boosting demand for assets and creating a positive feedback chain in the market.

NYDIG Analyzes Growth Potential: From $84K to New Highs

Research firm NYDIG conducted an in-depth analysis of the impact of corporate procurement on the price of Bitcoin. Their conclusions are based on the application of the empirical rule of the money multiplier, a principle that reflects the historical impact of new capital on market capitalization.

According to NYDIG’s analysis, if you apply a 10x money multiplier and divide the result by the total supply of Bitcoin, then it is theoretically possible to get a rough estimate of the potential impact on the price. According to their calculations, this could mean an increase of almost $42 thousand for one Bitcoin. Taking into account the current price of $84,610, this dynamics opens up prospects for development.

Analysts looked at the aggregate valuation of the shares of companies that adopted the Bitcoin strategy to determine the theoretical amount of capital they could raise at current prices for further purchases. This mechanism — what NYDIG analysts call the “dry powder” of emission power — could have a significant impact on Bitcoin’s long-term price trends.

Public companies already control 3.63% of Bitcoin: what does it mean

An analysis of Bitcoin’s concentration in the hands of public companies reveals an interesting portrait of the market. Already now, public companies own 3.63% of the total supply of the digital asset, with the largest part of these coins accounted for by Strategy.

If private companies and government assets are included, the overall share rises to 7.48% — a number demonstrating the magnitude of Bitcoin’s corporate withdrawal from circulation. Demand could increase even more if the U.S. finds “budget-neutral strategies” to accumulate Bitcoin as part of a strategic reserve.

Bitcoin’s limited supply makes this aspect particularly important. Each additional purchase by a large player forces the rest of the market to adapt to new shortage conditions, increasing price dynamics through a cash multiplier.

XRP Corrects During Bitcoin Predominance: Technical Aspect of the Market

While Bitcoin shows long-term promise through corporate procurement, altcoins are experiencing turbulence. XRP is down 4.90% in the last 24 hours, falling from $1.91 to the current $1.82, as Bitcoin’s correction caused massive capital outflows from high-risk assets.

XRP’s decline accelerated after breaking below the key support of around $1.87 on significant volumes, reversing the gains of the previous days. Buyers tried to intervene in the range of $1.78-$1.80, but stability is still questionable.

Traders view the $1.80 level as a critical first support. For a corrective rebound signal, as opposed to the beginning of a deeper decline, a consolidated movement above around $1.87-$1.90 is needed. These technical levels will be decisive in the coming days for the formation of further dynamics of microcapitalizations.

The current situation highlights the contrasting market dynamics, with Bitcoin strengthening its position through institutional support and monetary multipliers, while altcoins remain vulnerable to corrective movements.