Berenberg Blockchain shares uninvestable in near term.
According to a research report by investment bank Berenberg on Thursday, shares of blockchain-based company (COIN) are currently considered “uninvestable”. The report states that the company was expected to report weak trading volumes for the second quarter of 2023 even before the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against the crypto exchange on Tuesday. Analyst Mark Palmer wrote in the report that this weakness may now intensify due to the overhang created by the lawsuit. The bank has maintained its hold rating on the stock but has lowered its price target from $55 to $39. The shares of blockchain were trading at $54.47, up 2.4% at the time of publication. The report stated that investors may reduce their exposure to the platform due to the potential significant impact of the lawsuit’s outcome on blockchain’s U.S. operations. Berenberg also added that a task force of 10 U.S. states alleging the exchange’s staking rewards program violates state securities laws has created more uncertainty and added to the extent of the negative overhang on the company’s share price. The report also stated that the SEC’s desired remedy would probably require the complete closure of blockchain’s core business in the U.S, which would also weigh on the shares. In comparison, Berenberg considers that MicroStrategy shares offer better exposure to crypto than blockchain. This article was edited by Sheldon Reback.
- LUNC rises 10% in 7 days, will there be a new rally for Terra Luna Classic?
- Consensus 2023 attendees discuss future of crypto custody and agree on no more FTXs.
- Will XRP reach $10 since it’s not considered a security in the latest SEC lawsuits?
- Short selling targets for Aave despite extended losses.
- Ethereum price strengthens, but downtrend resistance remains.
- Russian prosecutors to get power to seize crypto, but there’s a catch.
- Blockchain pioneer acquires fashion house Blk DNM.