Berenberg: MicroStrategy Beats Coinbase for Crypto Exposure


Berenberg analysts have a different view on each of the two leading crypto companies – MicroStrategy Inc and Coinbase Global Inc. They argue that MicroStrategy is a better pick for exposure to cryptocurrencies than Coinbase.

According to Mark Palmer and Hassan Saleem, MicroStrategy features a unique business model and presents an attractive alternative to Coinbase. They see upside in the technology company to $340 a share – up another 20% from here. The firm currently owns about 140,000 BTC in total.

Unfortunately, Berenberg analysts have only a “hold” rating for Coinbase stock with a price objective of $55 a share. The reason for this is the ongoing regulatory scrutiny. In March, Coinbase received a “Wells Notice” from the U.S. Securities and Exchange Commission (SEC).

On the other hand, MicroStrategy is insulated from such risks since Bitcoin has already been classified as a commodity and not a security. The correlation between MSTR and COIN currently stands at about 0.96.

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