There is currently more than enough cash sitting on corporate balance sheets to send Bitcoin up another 10x from current levels.
Yesterday we talked about what might happen if S&P 500 companies invested roughly 1% of their cash into bitcoin.
More on that can be seen here btw:
The long and short of it was that a 1% allocation would send the price of bitcoin higher by another $40k.
But what if they invested say 10% of their cash?
Based on data compiled by Bloomberg, there is roughly $2.8 trillion cash and cash equivalents sitting on S&P 500 corporate balance sheets.
https://finance.yahoo.com/finance/news/bitcoin-hits-record-mastercard-bny-141004267.html
If we were to see roughly 10% of that move into bitcoin, it would represent an increase in the price of bitcoin by more than $400k.
How likely is that to actually happen?
While that certainly sounds exciting, how likely is that to actually happen?
There are many out there quick to say that 10% isn't likely at all, and that even 1% may not be likely as well.
However, while I haven't spoken directly to many of the corporate balance sheet decision makers out there I would say that given the fact that many are being rewarded extremely well right now for taking the leap it's only going to encourage others to follow suit.
And remember, we are talking about an average of 1% or 10% here, if someone like MSTR puts 100% of their cash in, others can not put any and still get us to that 1 or 10% number.
When you really think about it, putting 1% of their cash into something is nothing.
If it goes to zero, they lost 1% of their cash, that's basically a rounding error.
Even 10% isn't that large, though it does start to impact things a bit more.
The other thing I'd mention is that this is solely the S&P 500 companies, it doesn't include Nasdaq companies or Dos companies, or Russell companies.
Plus it only includes public companies!
When you start to think about it like that it starts to look all the more likely that those $400k numbers can be hit with or without 10% of the S&P 500 cash getting involved.
Stay informed my friends.
-Doc