MicroStrategy is healthier than Coinbase for crypto publicity: Berenberg

• Berenberg analysts sees upside in MicroStrategy to $340.
• They clarify their bullish view in a latest analysis word.
• Coinbase inventory has a “maintain” ranking solely at Berenberg.

MicroStrategy Inc is a greater choose for publicity to cryptocurrencies than Coinbase International Inc, as per the Berenberg analysts.

MicroStrategy inventory has upside to $340

Mark Palmer and Hassan Saleem see upside within the know-how firm to $340 a share – up one other 20% from right here. In a latest analysis word, they mentioned:

MicroStrategy which contains a distinctive enterprise mannequin centered on the acquisition and holding of bitcoins, represents a pretty different to Coinbase within the present surroundings.

At writing, the Nasdaq-listed agency owns about 140,000 BTC in whole. Earlier in Could, MicroStrategy mentioned it took an impairment cost of $170 million on its bitcoin holdings within the first quarter.

Its inventory worth has already practically doubled because the begin of the yr.

Why is Berenberg dovish on Coinbase inventory?

On Coinbase, Berenberg analysts have a “maintain” ranking with a worth goal of $55 a share – roughly in step with the place it’s at the moment buying and selling.

They’re dovish primarily because of the ongoing regulatory scrutiny. In March, the crypto trade obtained a “Wells Discover” from the U.S. Securities and Change Fee (SEC).

Coinbase’s income is in danger within the occasion of an enforcement motion are disproportionately worthwhile relative to its whole income.

As compared, MicroStrategy focuses on bitcoin that’s already been categorized as a commodity and never a safety thereby insulating it from such dangers. The correlation between MSTR and COIN at the moment stands at about 0.96.