Bitcoin treasuries could tap PIPE and convertibles if Fed slashes rates today

Nearly everyone is awaiting the Federal Reserve's decision on interest rates and the crypto community is monitoring how Bitcoin's price will react to the much-anticipated announcement.

Traders on Polymarket think there is more than a 90% chance of a rate cut by at least 25 basis points on Sep. 17.

Related: What is Crypto? Cryptocurrency explained

Two Prime founder and CEO Alexander Blume thinks that if the Fed indeed slashes rates, Bitcoin treasury firms could witness a hike in funding via private investment in public equity (PIPE) and convertible debt. Two Prime is an SEC-registered investment advisor that manages Bitcoin assets on behalf of institutional investors.

Blume told TheStreet Roundtable that more money will flow into innovative and riskier investment vehicles in case of a rate cut, which would be a positive development for Bitcoin treasury firms.

"The investors funding PIPEs and convertible debt into these vehicles rely on the ability to cycle through the investments, so the prospect of a continued bull market emboldens them to continue participating as well."

To put it simply, a rate cut translates to more liquidity in the market. As per Blume, investors funneling more money via instruments like convertible debt into Bitcoin treasury firms would essentially be betting on a long Bitcoin bull run.

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25 bp cut 'largely constructive' for Bitcoin

Blume added, "I suspect a 25bp cut over the next several quarters will be largely constructive for risk assets, including bitcoin."U.S. President Donald Trump presents Federal Reserve Chair Jerome Powell with what he Trump called a list of cost overruns for the Federal Reserve’s $2.5 billion headquarters renovation project on July 24, 2025 in Washington, DC. Trump has been critical of the cost of the renovation, blaming Fed Chair Jerome Powell, whom he has called a "numbskull,” for the cost. Trump has recently threatened to oust Powell because, according to the president, the bank has not lowered interest rates fast enough.

He contends that high inflation, a stalling labor market, and a weakening dollar strengthen the case for Bitcoin as a trusted reserve asset.

"We’ve seen a flight to safety with gold rallying as of late, and I suspect BTC will follow suit."

As per Kraken's price feed, Bitcoin was trading at $115,767.22, down 0.2% in an hour.

Edited by:Mehab Qureshi

This story was originally reported by TheStreet on Sep 17, 2025, where it first appeared in the MARKETS section. Add TheStreet as a Preferred Source by clicking here.

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