Mizuho advises clients to buy Bitcoin instead of Coinbase stocks
Mizuho Securities USA, an investment banking subsidiary of Mizuho Securities, advised clients to directly invest and hold Bitcoin instead of investing in cryptocurrency exchanges such as Coinbase in a note Thursday.
The note came as Coinbase shares dipped lower after revealing disappointing financial results for the third quarter of 2021. Coinbase closed at US$336.39 today, up by 2.37% from yesterday.
While maintaining a neutral recommendation stance on Coinbase stock, Mizuho analysts advised investors to instead purchase Bitcoin. The move will likely result in investors avoiding tailwinds, such as rising competition and the current “commoditization of cryptocurrency exchanges”.
Analyst Dan Dolev of Mizuho set the target price of Coinbase shares at $300 and quoted a dramatic decline in retail take rate.
Coinbase saw a 29% decline in trading volume for the third quarter. In addition, retail trading volume dropped by 36% to US$93 billion.
The post Mizuho advises clients to buy Bitcoin instead of Coinbase stocks appeared first on Our Bitcoin News.
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