The cryptocurrency has left the station once again, indicating that the recent fall is a mere fall in the bullish market. The future bear market appears further away from what was initially thought and recently there have been several confidence-building events for bitcoin and its digital currency brethren.
On the one hand, last week, UWM Holdings, the second-largest mortgage lender in the United States, announced that it would soon begin accepting payments with bitcoins, marking another step toward widespread adoption.
Closer to Bitcoin’s natural surroundings, also last week, Coinbase (CURRENCY) announced that the council had approved the purchase of $ 500 million in cryptocurrencies that would be added to the balance sheet. Bitcoin will take its place among other cryptocurrencies such as Ethereum, betting test assets, DeFi tokens and other cryptocurrencies. But that’s not where it ends. The company also said it intends to build a portfolio of cryptographic assets, allocating 10% of its quarterly profits to the effort.
In addition, in the long run, Coinbase hopes to further integrate cryptography into its day-to-day activities. Oppenheimer’s Owen Lau points out that this could ultimately mean paying its salespeople and employees digital assets, among other “financial transactions”. Lau believes this is the aspect that investors should really consider.
“Buying on-balance sheet cryptography is certainly a testament, but the additional integration of digital assets into COIN’s corporate practice has a deeper influence not only on COIN but on the entire cryptoeconomy,” the 5-star analyst said. “COIN is well positioned to introduce new products (e.g., credit / debit cards) to support retail transactions in cryptography and to influence the adoption of cryptography in institutional transactions.”
Since Coinbase went public in April, its stock price movements have followed bitcoin closely, and after the news, Lau does not expect the “correlation to go down materially in the near future”.
However, over time, the correlation should decrease as BTC’s dependence decreases and the company “diversifies” from business revenue.
Overall, Lau reiterated an overrun rating (i.e., Buy) of COIN shares, while remaining with a target price of $ 444. Involvement for investors? ~ 73% top. (To see Lau’s trajectory, click here)
Most of Lau’s colleagues agree. The consensus purchase rating of the shares is based on 10 purchases vs. 3 withholdings and 1 sale. The forecast is based on 12-month earnings of ~ 36%, taking into account the average target prices of watches at $ 350.17. (See COIN stock analysis at TipRanks)
To find good ideas for trading stocks with attractive valuations, visit TipRanks Best Stocks to Buy, a recently launched tool that brings together all of TipRanks ’equity knowledge.
Disclaimer: The views expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
Sometimes we include links to online retail stores. If you click on one and make a purchase we may receive a small commission.