Publicly traded companies increasingly adding bitcoin to their balance sheets is a growing trend that could have a major impact on the cryptocurrency’s price. A new analysis by NYDIG suggests that this strategy could spark a significant price surge due to the impact of institutional buying.

The research uses a 10x “money multiplier” model to predict that for every dollar invested by publicly traded firms in bitcoin, the digital asset could see its price increase by an estimated $42,000. This finding highlights the potential scale of price movement triggered by large-scale corporate purchases.

NYDIG’s study focused on key players in the corporate space, such as Strategy (MSTR), Metaplanet (3350), Twenty One (CEP), and Semler Scientific (SMLR), to evaluate how their bitcoin acquisitions have affected their market value. With these firms raising capital to fund further bitcoin purchases, the potential exists for these investments to significantly influence bitcoin’s overall market capitalization.

The analysis suggests that bitcoin’s price could increase by up to 44%, taking the cryptocurrency from its current price of $96,000 to much higher levels. This forecast may attract institutional investors on Wall Street, particularly as other markets show signs of instability.

Furthermore, Strategy holds the largest portion of the total bitcoin supply among publicly traded firms, with 3.63% of all bitcoin currently in its possession. Adding in private companies and government holdings, the total amount of bitcoin controlled by such entities rises to 7.48% of the supply, according to BitcoinTreasuries data.

As the trend toward corporate bitcoin acquisition continues, and with the possibility of governments seeking to hold bitcoin as part of strategic reserves, the demand for the cryptocurrency could soar, driving prices higher in the coming years.