Latest news with #GautamChhugani
Yahoo
3 days ago
- Business
- Yahoo
Ethereum Blockchain Is Useful Technology That 'Deserves Love,' Bernstein Says
The Ethereum blockchain's unique selling point is its role as a decentralized computer, Wall Street broker Bernstein said in a research report Monday. Inflows into ether ETH exchange-traded funds are increasing as institutions become aware of the network's value proposition, the broker said. The blockchain "deserves love" as it is useful technology, according to the report, acknowledging that ether's larger peer bitcoin benefits from its perception as a store of value, or digital gold. "Interesting blockchain use cases such as stablecoins and tokenization are native to Ethereum, analysts led by Gautam Chhugani wrote, adding that the network enjoys "maximum market share" in these areas. Companies that use stablecoin technology are paying transaction fees to the Ethereum blockchain, the report noted. As institutions become more aware of the value inherent in the network, ether ETF inflows have begun to pick up, the report noted. Ether ETF inflows reached $815 million over the last 20 days, with year-to-date net inflows turning positive at $658 million, Bernstein said. "The narrative around value accrual of public blockchain networks is at a critical inflection point, " the broker said, and this is "starting to reflect in investor interest in ETH ETF inflows."Sign in to access your portfolio
Yahoo
28-05-2025
- Business
- Yahoo
GameStop stock slides 10% as company announces $500 million bitcoin purchase
GameStop (GME) stock sank more than 10% on Wednesday after the video game retailer announced it purchased 4,710 bitcoin (BTC-USD). With bitcoin trading around $108,000 per token, the investment is valued at over $500 million. The token reached a record high north of $111,000 last week. In March, the company, led by billionaire Ryan Cohen, formally announced that its board unanimously approved adding the cryptocurrency as a treasury reserve asset. Subsequently, the meme stock tumbled nearly 25% in one session after the retailer said it intended to raise $1.3 billion via convertible senior notes to purchase bitcoin. Public companies have increasingly added bitcoin to their balance sheets, following the lead of Strategy (formerly MicroStrategy) (MSTR), the largest corporate holder of bitcoin. On Tuesday, Trump Media & Technology Group (DJT) unveiled plans to raise $2.5 billion to create what it claims will be one of the largest bitcoin treasuries held by any public company. Shares of Trump Media, which are majority owned by President Trump, fell over 10% following the announcement. 'We're at a space where people are racing to put this on their balance sheet,' BitcoinIRA co-founder & coo Chris Kline told Yahoo Finance on Wednesday morning. 'With the hype and expected price movements ahead... that's a huge growth in the balance sheet for these groups," he added. Bernstein analyst Gautam Chhugani points to increasing corporate adoption of bitcoin as a bullish sign for the token. "Globally, ~80 corporates have adopted the 'Bitcoin Standard,' adding BTC to their treasuries and now holding approximately 3.4% of total supply," Gautam Chhugani wrote earlier this month. That amounts to roughly 720,000 tokens — up 160% from the 270,000 held at the end of 2023. Bernstein forecasts that bitcoin will reach $200,000 by year-end. Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on X at @ines_ferre. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
28-05-2025
- Business
- Yahoo
GameStop stock slides as company announces $500 million bitcoin purchase
GameStop (GME) stock sank more than 3% on Wednesday after the the video game retailer announced it has purchased 4,710 bitcoin (BTC-USD). With bitcoin trading around $108,000 per token in early trading, the investment is valued at over $500 million. The token reached a record high north of $111,000 last week. In March, the company led by billionaire Ryan Cohen formally announced its board unanimously approved adding the cryptocurrency as a treasury reserve asset. Subsequently, the meme stock tumbled nearly 25% in one session after the retailer said it intended to raise $1.3 billion via convertible senior notes to purchase bitcoin. Public companies have increasingly added bitcoin to their balance sheets, following the lead of Strategy (formerly MicroStrategy) (MSTR), the largest corporate holder of bitcoin. On Tuesday Trump Media & Technology Group (DJT) unveiled plans to raise $2.5 billion in order to create what it claims will be one of the largest bitcoin treasuries held by any public company. Shares of Trump Media, which are majority owned by President Trump, fell over 10% following the announcement. Bernstein analyst Gautam Chhugani points to increasing corporate adoption of bitcoin as a bullish sign for the token. "Globally, ~80 corporates have adopted the 'Bitcoin Standard,' adding BTC to their treasuries and now holding approximately 3.4% of total supply," wrote Gautam Chhugani earlier this month. That amounts to roughly 720,000 tokens — up 160% from the 270,000 held at the end of 2023. Bernstein forecasts bitcoin will reach $200,000 by year-end. Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on X at @ines_ferre.
Yahoo
17-05-2025
- Business
- Yahoo
Coinbase Global Stock (COIN) Prepares for S&P 500 Listing With 16% Spike
Cryptoeconomy enabler Coinbase Global (COIN) rallied 16% over the past five days to celebrate its public listing on the S&P 500 index, scheduled for next week. Quickly and easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks straight to you inbox with TipRanks' Smart Value Newsletter Coinbase's addition to the S&P 500 marks a historic milestone as the first cryptocurrency exchange included in the index, symbolizing a step toward mainstream acceptance of crypto. This move is expected to boost institutional interest and attract new capital, especially through passive funds that must buy S&P 500 components, effectively making Coinbase and, by extension, Bitcoin (BTC), a 'must-own' investment. However, while rosy developments are nice to see for existing shareholders, I remain neutral on the stock due to risks like potential overvaluation, declining earnings, revenue concentration, and increasing competition. Bernstein analyst Gautam Chhugani, who holds a Buy rating on Coinbase, estimates that its inclusion in the S&P 500 could attract approximately $16 billion in passive and active fund inflows, potentially boosting the stock further. However, with Coinbase's market capitalization already having surged by $10 billion, much of this anticipated inflow may be priced in. The focus now shifts to the company's underlying fundamentals. Coinbase earns revenue through transactions, subscriptions, and services, mostly coming from transaction fees such as spreads and retail trading fees. In its Q1 2025 earnings report published earlier this month, Coinbase saw a 10% decline in trading volume, leading to total revenue of $2 billion—a 10% drop quarter-over-quarter—and transaction revenue falling 19% quarter-over-quarter to $1.3 billion. The company attributed this decline to crypto market volatility and ongoing uncertainty. Ultimately, much of Coinbase's performance remains closely linked to the health and activity of the cryptocurrency market. Widespread adoption of cryptocurrency will inevitably require government involvement. Crypto enthusiasts hoped President Donald Trump, a vocal supporter of cryptocurrencies, would help legitimize the space. However, meaningful legislation has yet to materialize, and Trump's so-called 'Strategic Bitcoin Reserve,' which doesn't involve actual cryptocurrency purchases, fell short of expectations. In fact, Trump appears to have used cryptocurrency primarily for personal gain, as seen in recent meme coin promotions and family ventures. Meanwhile, Bitcoin trading remains banned in countries like China, Saudi Arabia, and Egypt. Recognizing its heavy reliance on Bitcoin, Coinbase is diversifying by expanding into more stable revenue streams such as custody services, staking, and institutional offerings. Coinbase faces fierce competition in this uncertain landscape from exchanges like Binance, Kraken, Robinhood, and Gemini. Binance remains the global leader, holding a 38% market share as of April 2025. Each platform has its own strengths and weaknesses, catering to different user bases based on factors like geography and user experience. This makes the crypto exchange space highly competitive, with no single player dominant enough to eliminate the rest. That said, Coinbase's early entry into the U.S. market and strong regulatory compliance provide it with a notable advantage domestically. Despite experiencing a sequential revenue decline, Coinbase clearly did something right to earn its spot in the S&P 500. Coinbase remains profitable, and critically, has the financial strength to withstand short-term cryptocurrency volatility, as evidenced by a significantly improved debt-to-asset ratio. On Wall Street, COIN sports a Moderate Buy consensus rating based on 12 Buy, 11 Hold, and zero Sell ratings in the past three months. COIN's average price target of $264.19 represents potential upside of 8% over the next twelve months. Earlier this month, analyst Ed Engel of Compass Point upgraded COIN to Hold with a price target of $195. The analyst expressed optimism and caution surrounding the emergence of altcoins. While he noted that altcoins could increase trading activity, he also recognized their structural challenges. Oppenheimer's Owen Lau is more bullish on COIN, slapping an Outperform rating on the stock and a price target of $293. Oppenheimer believes the stock's inclusion has huge implications for Coinbase and the crypto industry as a whole. According to the analyst, getting into the S&P 500 not only increases purchases from index funds but also puts Coinbase under the closer radar of non-index funds that benchmark against the S&P 500. Coinbase's inclusion in the S&P 500 marks a significant milestone for both the company and the cryptocurrency industry, but much of this positive news is already reflected in its stock price. COIN currently trades at a lofty P/E ratio of ~50—more than double the sector median—reflecting high expectations. While its impressive revenue growth of over 100% in 2024 partially justifies this premium, that growth pace is unlikely to continue, with future projections more modest. Coinbase's heavy reliance on cryptocurrency trading volume creates earnings uncertainty, compounded by ongoing political and regulatory risks and fierce competition in the exchange market. Given these factors, it's wise to temper enthusiasm and take a more cautious stance on COIN stock. Disclaimer & DisclosureReport an Issue
Yahoo
13-05-2025
- Business
- Yahoo
Analyst predicts $16B boost for new company joining S&P 500
Leading brokerage firm Bernstein is very bullish on Coinbase (Nasdaq: COIN) following the announcement of its upcoming addition to the S&P 500. Bernstein analysts led by Gautam Chhugani issued a note on May 13 as per which the Coinbase stock could witness as much as $16 billion in capital inflows — $9 billion from S&P 500-linked passive funds and $7 billion from active allocations. Coinbase is the "first and only crypto company to join the S&P 500," and it is a 'dramatic turnaround' for a company only until recently involved in a legal case with the Securities and Exchange Commission (SEC), the note mentioned. The note also underlined the development as part of the broader trend of growing crypto legitimacy in the traditional markets. Bernstein analysts doubled down on the earlier projection from mid-March, according to which the COIN stock could reach the minimum value of $310 with an "outperform rating." Founded in 2012, Coinbase became a publicly traded company in April 2021. The exchange is the largest crypto exchange in the U.S. that processes over $1.5 billion in average daily trading volume. It has over $320 billion in assets and caters to nearly 10 million active users each month. Coinbase will join the S&P 500 before the market opens on May 19, replacing Discover Financial Services (DFS). The S&P 500 is a benchmark stock market index composed of large-cap tech companies. COIN was exchanging hands at $248.22 at the time of writing, reflecting a rise of around 20% since the listing announcement. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
