Bitcoin

Best Crypto Stock: Coinbase Global vs. Coinbase

Published

9 months ago

9 May, 2024

Best Crypto Stock: Coinbase Global vs. Coinbase

Bitcoinin (Bitcoin -1.39%) price has more than doubled over the past 12 months as the approvals of its first spot price ETFs, the halving of its mining rewards, and the stabilization of interest rates have brought back the bulls. The easiest way to profit from Bitcoin’s rally was to simply buy the cryptocurrency or invest in one of the new ETFs.

However, Bitcoin Rally also lit a fire under stocks like Coin base (COIN -1.47%), one of the world’s leading cryptocurrency exchanges, and Microstrategy (MSTR -1.93%), an aging enterprise software company that began accumulating Bitcoin in 2020. Over the past 12 months, Coinbase shares are up more than 280% and MicroStrategy shares are up more than 270%. Let’s see which of these crypto stocks is the best buy right now.

Image source: Getty Images.

Coinbase Business Is Finally Stabilizing

Coinbase generates most of its revenue from transaction fees, so its growth is heavily tied to the broader cryptocurrency market. In 2023, it generated 34% of its trading volume from Bitcoin, 20% from Ether (ETH -0.58%) and 11% of its stable coins. The remaining 35% came from smaller altcoins and other crypto assets.

Coinbase’s revenue soared 514% in 2021 due to stimulus checks, social media buzz and fear of missing out (FOMO) attracted more investors to the cryptocurrency market. However, its revenues fell 59% in 2022 as rising rates burst the speculative bubble.

Its revenue fell another 3% in 2023 as “crypto winter” cooled its business. But in the fourth quarter of 2023 and the first quarter of 2024, its turnover and total revenue increased again sequentially. This stabilization was largely driven by the aforementioned tailwinds for Bitcoin and other cryptocurrencies.

Coinbase has also continued to grow as several of its biggest competitors have been hampered by regulatory challenges and has become the main custodian of most of the market’s new Bitcoin spot ETFs. Analysts expect its revenue to increase 80% for the full year.

Coinbase Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) margin also returned to positive in 2023 as it aggressively reduced costs. Analysts expect its adjusted EBITDA margin to increase from 31% in 2023 to 49% in 2024 when crypto winter finally ends. Based on these expectations, Coinbase shares still look reasonably valued at 19 times this year’s adjusted EBITDA.

MicroStrategy is still going all in on Bitcoinn

MicroStrategy’s core software business primarily sells data analysis software to large enterprise customers. Over the past decade, it has faced intense competition from cloud-based analytics companies such as Sales forcediversified cloud infrastructure platforms such as Amazon Web Services (AWS) and Microsoft Azure and smaller business intelligence companies.

MicroStrategy has gradually expanded its subscription-based services to offset declining license and support revenue. But this process was slow and the company unexpectedly changed direction in August 2020, purchasing $250 million worth of Bitcoin. By the end of the first quarter of 2024, it had spent $7.54 billion purchasing 214,400 Bitcoins at an average cost of $35,180 per Bitcoin.

At the time of writing, MicroStrategy’s Bitcoin holdings are now worth $13.8 billion – which represents more than half of its $25.3 billion enterprise value.

Bulls believe that MicroStrategy’s Bitcoin accumulation strategy will transform it into a much larger company, even if growth in its core business stagnates. Even so, analysts still expect the company’s revenue to fall about 1% this year as it struggles to sell more software.

The company is also taking on more debt to finance its Bitcoin purchases, and analysts expect it to become unprofitable again based on generally accepted accounting principles (GAAP) this year as it accumulates more impairment costs from its Bitcoin purchases. Analysts expect its adjusted EBITDA to grow 8% this year – but its shares look expensive at 277 times the estimate.

The obvious winner: Coinbase

Coinbase will continue to be a linchpin and benchmark of the growing cryptocurrency market, while MicroStrategy is simply a slow-growing software company that is going all-in on Bitcoin. Coinbase is also growing faster and trades at lower valuations than MicroStrategy. Both stocks could continue to rise as the crypto market recovers, but Coinbase is clearly a more promising long-term investment than MicroStrategy at this point.

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Leo Sun has positions on Amazon. The Motley Fool has positions and recommends Amazon, Bitcoin, Coinbase Global, Ethereum, Microsoft, and Salesforce. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The motley fool has a disclosure policy.

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Bitcoin

What to watch for in the markets

Published

6 months ago

21 July, 2024

SatoshiTimes Staff

Photo: Andrew Harnik (Getty Images)

After witnessing one of the largest global IT outages on record, affecting the travel, finance and healthcare sectors worldwideThis week is set to see more political drama, events, and earnings reports from tech giants.

Donald Trump’s ‘Lovefest’ Sets Jamie Dimon Up for Consideration for Treasury Secretary Job

Let’s take a look at what awaits us:

Major companies will release their earnings reports

Major tech companies and others will release their earnings reports this week, paving the way for what the second half of 2024 will look like.

Monday

Verizon will report earnings before the start of operations.

Tuesday

Coca-Cola, Comcast and UPS are all set to report earnings before the market opens.
Tesla will report earnings in the morning, while General Motors will report earnings in the evening.
Alphabet and Visa will report results after the market closes.

Wednesday

AT&T will release its report before the market opens.
Ford and Chipotle will report earnings after the market closes.

Thursday

Earnings reports from AstraZeneca, American Airlines and Southwest Airlines will be released before the market opens.

Trump to speak at Bitcoin conference

Presumptive Republican presidential nominee Donald Trump will speak at the next Bitcoin Conference in Nashville, Tennesseewhich is scheduled for July 25-27. While this is the first time a presidential candidate will attend the conference, it has sparked a debate over whether the crypto-friendly Trump will receive support from the crypto community in the upcoming election.

In addition to Trump, independent presidential candidate Robert F. Kennedy Jr. will also discuss crypto during the conference. Crypto advocates such as ARK Investment’s Cathie Wood, MicroStrategy’s Michael Saylor, and whistleblower Edward Snowden are among some prominent names who will be participating in the conference.

Ether ETFs are on the way

New Ether Spot ETFs are set to begin trading on Tuesday, July 23. Much like the spot Bitcoin ETFs, these ETFs will allow investors to buy the second most popular cryptocurrency like stocks. BlackRock, Ark Invest/21Shares, VanEck, Grayscale, Fidelity, Bitwise, Franklin Templeton, and Invesco/Galaxy Digital are all set to offer Ether ETFs. Crypto asset manager Bitwise predict that trading in the Ether ETF will drive the price of Ether higher, potentially surpassing $5,000.

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Bitcoin

Cryptocurrency’s Biggest Winners and Losers in a Second Trump Presidency

Published

6 months ago

21 July, 2024

SatoshiTimes Staff

Cryptocurrency’s Biggest Winners and Losers in a Second Trump Presidency

Bitcoin miners and cryptocurrency companies that have been blocked from going public in the U.S. could ultimately be the biggest winners in the digital asset world under a second Donald Trump presidency. Foreign companies at risk of losing market share could end up being the biggest losers.

That’s the view that’s taking hold among market participants and observers in the wake of the former president’s growing embrace of cryptocurrency as his chances of election grow. survey released Thursday by CBS News showed Trump with the majority — 52 percent — of likely voters in his likely November rematch with President Joe Biden.

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Bitcoin

Bitcoin, Ethereum, Solana and Cryptocurrency Markets Look Ready to ‘Send’ as Stars Align, According to Investor Chris Burniske

Published

6 months ago

21 July, 2024

SatoshiTimes Staff

Bitcoin, Ethereum, Solana and Cryptocurrency Markets Look Ready to ‘Send’ as Stars Align, According to Investor Chris Burniske

Cryptocurrency investor Chris Burniske says Bitcoin (BTC), Ethereum (ETH), Solana (SUN) and the cryptocurrency market in general seem poised for a run.

Former Head of Cryptocurrency at ARK Invest account his 292,200 followers on social media platform X that several catalysts are aligning, suggesting that digital asset markets are on the verge of a bull run.

According to Burniske, a partner at venture capital firm Placeholder, the highly anticipated launch of Ethereum-based exchange-traded funds (ETFs), Republican presidential candidate Donald Trump speaking at an upcoming Bitcoin event, and the current state of the BTC, ETH, and SOL charts all suggest significant optimism for the cryptocurrency markets.

“With ETH ETFs set to go live, Trump speaking at The Bitcoin Conference, and BTC, ETH, and SOL charts looking [they do] (while stocks are weak), it’s hard to imagine a world where we don’t ship next week.”

Reuters recently reported that preliminary approval for ETH ETFs has been granted as the Bitcoin Conference is scheduled to take place from July 25-27.

BTC, ETH, and SOL are trading at $67,333, $3,528, and $174 at the time of writing, respectively.

The venture capitalist too provides an update on his prediction that the total crypto market cap will eventually hit $10 trillion. According to his chart, the path to $10 trillion is currently “23%” complete, as it sits around $2.2 trillion.

Source: Chris BurniskeX

Earlier this month, Burniske he said in an interview with Real Vision CEO Raoul Paul that he has his eye on the Move ecosystem, which was originally built by social media giant Meta and then used to develop layer 1 blockchains Sui (IUE) and Apts (APT).

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Bitcoin

Here’s the next target for BTC before bulls can hold out for $70K

Published

6 months ago

21 July, 2024

SatoshiTimes Staff

Here’s the next target for BTC before bulls can hold out for $70K

Bitcoin’s recovery is going well, and the market is seemingly poised to create a new all-time high in the near term.

Technical analysis

Per NegotiationRage

The daily chart

As the daily chart shows, the price of Bitcoin has been rising since it broke above the 200-day moving average.

The market has also reclaimed the $60K and $65K levels and is moving towards the $68K resistance zone, which could be the last hurdle before creating a new all-time high. With the RSI also indicating that the price has clear bullish momentum, it could be just a matter of time.

Source: TradingView

The 4-hour chart

Looking at the 4-hour chart, it is evident that the price has been rising rapidly since breaking the downtrend line to the upside. The market also broke the $65K resistance level with momentum, turning it into a support.

While almost everything points to a new record high in the coming weeks, there is one worrying sign. The RSI is showing a clear bearish divergence between recent price highs, which could indicate a correction or even a reversal in the near term.

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Cryptocurrency Charts by TradingView.

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