KEY POINTS

  • Cathie Wood of ARK Invest says Bitcoin's price will go up if more companies buy the cryptocurrency
  • A 10% allocation could put Bitcoin at $200,000
  • Tesla, MicroStrategy and Square offered a blueprint for other companies to follow

As Bitcoin breaches past $50,000, many analysts are looking at potential future price points. Cathie Wood, CEO of Ark Invest, says Bitcoin's value could go up to over $200,000 if more corporations follow Tesla's lead.

The price of Bitcoin would go up depending on the percentage of cash the companies invest in the cryptocurrency, she told CNBC on Wednesday. "If all corporations in the U.S. were to put 10% of their cash into bitcoin that alone would add $200,000 to the Bitcoin price," the ARK Invest CEO added. 

Wood, however, thinks it won't happen immediately as Bitcoin possibly needs to grow more before a majority of companies become ready to put more of their cash in it. Wood is surprised by the pace at which some companies are doing this. "We expected institutions but the way in which it has picked up has surprised us," she said.

Among corporations, it was MicroStrategy that took the lead in adding Bitcoins to their portfolio. The business intelligence firm is now planning to sell more convertible debt to buy more Bitcoin. 

Wood told Yahoo Finance last week that the move by MicroStrategy and Square, which invested $50 million into Bitcoin, provided the blueprint for other companies to follow. This was followed by Tesla, which announced earlier this month that it purchased $1.5 billion worth of Bitcoins out of its excess cash. A recent article from The Block revealed that the electric car maker's purchase was facilitated by Coinbase, the largest cryptocurrency exchange in the U.S. The publication cited anonymous sources who claimed Tesla bought the coins in the open market over the course of several days. 

Wood, whose company has a stake in Grayscale Bitcoin Trust, has earlier said the dominant cryptocurrency still has the potential to go up.

Bitcoin closed at $52,170 on Wednesday, a new all-time daily high.

The value of bitcoin has soared by 75 percent since the start of the year The value of bitcoin has soared by 75 percent since the start of the year Photo: AFP / NICOLAS TUCAT