Investing in Bitcoin Directly May Be Better Bet Than Coinbase: Mizuho

The crypto exchange could face industry headwinds amid the wider adoption of cryptocurrency, Mizuho told clients.

Nov 11, 2021 at 4:55 p.m. UTC
Updated Nov 11, 2021 at 5:04 p.m. UTC

Michael Bellusci is CoinDesk's crypto payments reporter.

Investors may be better off owning bitcoin directly versus buying shares of Coinbase Global (COIN) to avoid expected headwinds, including increasing competition and the ongoing “commoditization of cryptocurrency exchanges,” Mizuho Securities USA told clients in a note Thursday.

  • Mizuho has a neutral recommendation on Coinbase shares and a $300 price target. Coinbase was recently trading at around $339 per share.
  • Analyst Dan Dolev also said that yield compression continues to be a headwind for Coinbase, and “isn’t limited to one type of market condition.”
  • Mizuho noted the performance of bitcoin and Coinbase have been similar since the latter’s first day of trading on April 14, with bitcoin up about 2% since then and Coinbase stock up by nearly the same amount.
  • Coinbase shares fell earlier this week after third-quarter results missed expectations. The stock was up about 3% on Thursday.

Read more about
The Festival for the Decentralized World
Thursday - Sunday, June 9-12, 2022
Austin, Texas
Save a Seat Now

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

CoinDesk - Unknown

Michael Bellusci is CoinDesk's crypto payments reporter.

CoinDesk - Unknown

Michael Bellusci is CoinDesk's crypto payments reporter.

Trending

1
CoinDesk - Unknown
First Mover Asia: Bitcoin Dominates but Altcoins Lurk

Although Terra's collapse has raised existential questions about the future of DeFi, some traders appear to be preparing for a return to altcoins; BTC remains rangebound below $30,000 in Tuesday trading.

Although Terra's collapse has raised existential questions about the future of DeFi, some traders appear to be preparing for a return to altcoins; BTC remains rangebound below $30,000 in Tuesday trading.

CoinDesk - Unknown
2
CoinDesk - Unknown
NEAR Protocol

CoinDesk - Unknown
3
CoinDesk - Unknown
MOBOX

CoinDesk - Unknown
4
CoinDesk - Unknown
Moonriver

CoinDesk - Unknown