Analysts Raise Price Targets for MicroStrategy and Coinbase Amid Crypto Market Growth
As investor interest in cryptocurrencies grows, particularly following Trump’s election win, stocks linked to the crypto asset class are gaining attention.
MicroStrategy Update
Benchmark’s Mark Palmer raised the price target for MicroStrategy (MSTR) shares from $300 to $450 on November 18, and again to $650. This follows a $3 billion offering of convertible senior notes and the purchase of 55,500 BTC between November 18 and November 24 for $5.4 billion, averaging $97,862 per BTC. MSTR shares were around $402 at 2 pm ET Monday, down 4.7% for the day but up 70% month-over-month.
Concerns arise as some question the valuation premium of MSTR shares compared to the market value of its BTC holdings. However, MSTR has generated approximately 79,130 bitcoins year-to-date, yielding 41.8%. The current BTC value is roughly $7.5 billion, with Palmer suggesting that this yield can be viewed similarly to earnings.
Coinbase Performance
Oppenheimer analysts increased their price target for Coinbase (COIN) from $265 to $358, with shares trading around $311 at 2 pm ET Monday. They noted the negative impact of SEC lawsuits on new capital influx into the sector, although Coinbase is seen as a leader in rebuilding industry reputation.
Since Election Day, average daily trading volumes at Coinbase have surged to $6.5 billion, significantly higher than the $2.4 billion year-to-date average prior to November 5. Oppenheimer projects Q4 spot trading volume will reach $350 billion, reflecting an 89% quarter-over-quarter and 127% year-over-year increase.
Other Crypto Stocks
Compass Point analyst Joe Flynn raised Galaxy Digital's (GLXY) price target from $22 (CAD) to $33 (~$24 CAD). GLXY is expected to benefit from rising crypto prices, trading volumes, and an uplisting to Nasdaq, alongside a term sheet for high-performance computing hosting.
Flynn downgraded Marathon Digital’s stock rating to neutral, citing limited upside despite benefiting from higher BTC prices. In contrast, Core Scientific (CORZ), which provides HPC hosting to CoreWeave, is positioned well for growth in application-specific data centers.
CORZ is a leading holding in the Amplify Transformational Data Sharing ETF (BLOK), which includes COIN, MSTR, Hut 8 Mining, and GLXY among its top five assets. Dan Weiskopf, co-manager of BLOK’s portfolio, emphasized the potential for blockchain technology to disrupt industries as regulations become more favorable.