The Intersection: Crypto And Wall Street This Week - Saturday, May 22

Cryptocurrency, Business, Finance, Money, Wealth, Gold

As bitcoin, ethereum and other cryptocurrencies get increasing attention from investors, Wall Street and its traditional banks continue to adjust to the shift. Catch up on this week's top stories highlighting the intersection of these old guard and new school areas of finance with this recap.

MICROSTRATEGY ACQUIRE MORE BITCOIN

MicroStrategy (MSTRannounced Tuesday that it purchased approximately 229 bitcoins for $10M in cash, at an average price of approximately $43,663 per bitcoin, inclusive of fees and expenses. As of May 18, the company holds approximately 92,079 bitcoins that were acquired at an aggregate purchase price of $2.251B and an average purchase price of approximately $24,450 per bitcoin, inclusive of fees and expenses. Additionally, amid Wednesday’s bitcoin rout, CEO Michael Saylor said "I'm not selling" via Twitter.

CHINA CRYPTO BAN

Three industry bodies in China have banned financial institutions, including banks and online payments channel operators, from providing services related to cryptocurrency transactions, but have not barred individuals from holding cryptocurrencies, Reuters reported Tuesday. "Recently, crypto currency prices have skyrocketed and plummeted, and speculative trading of cryptocurrency has rebounded, seriously infringing on the safety of people's property and disrupting the normal economic and financial order," the industry bodies stated.

COINBASE INITIATED WITH OUTPERFORM

Wedbush analyst Moshe Katri initiated coverage of Coinbase (COIN) on Wednesday with an Outperform rating and $275 price target. Coinbase is a "one stop shop" platform, enabling roughly 56M retail users, 8,000 institutions, and 134,000 ecosystem partners in over 100 countries to participate in the crypto economy, Katri said.

The analyst likes the company's "first-mover" advantage, saying Coinbase is the "default starting place for new user journeys into the crypto economy." Katri "conservatively" models for 20% revenue and earnings growth for 2022 and 2023. Meanwhile, Piper Sandler analyst Richard Repetto said on Thursday he believes the long term story of Coinbase remains intact despite the recent volatility in bitcoin. The current price of bitcoin remains above all prior quarters besides Q1 of 2021, bitcoin prices have materially corrected and reset higher at least three times prior and trading volumes, both on a coin-specific basis and at Coinbase, are tracking to quarterly records, Repetto said. He kept an Overweight rating on the shares with a $335 price target.

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