Goldman Sachs Upgrades Coinbase to Neutral as Bitcoin Prices Rally
On March 7, Wall Street Investment firm Goldman Sachs (GS) adjusted its bearish stance on Coinbase by upgrading COIN’s stock position from sell to neutral. This shift in position followed the recent bitcoin price uptrend, which set a new all-time high of $69,225.37 on Wednesday.
Goldman Sachs responded to this price rally by increasing the price target for COIN stock from $170 to $282.
This adjustment reflects the firm’s acknowledgment of the market-neutral strategy amid the current cryptocurrency boom, where portfolio managers seek to profit from market movements regardless of direction.
The Investment bank credited the crypto market uptrend for the recent skyrocketing performance of stocks.
“While we still see limited use cases of crypto at present, the ‘beta’ to the price action has significantly outweighed any alpha from not seeing an acceleration in retail adoption over time,” said Will Nance of Goldman Sachs.
While Coinbase’s positive performance is evident, a closer look into similar stocks of companies heavily invested in Bitcoin reveals a related trend.
Bitcoin-related companies like Marathon and Microstrategy, listed on NASDAQ, also experienced a surge in their stock prices since Bitcoin began to gain momentum.
Of the companies that have benefited from Bitcoin’s price surge, Michael Saylor’s MicroStrategy is currently the most prominent.
Saylor’s bet on holding a sizable amount of Bitcoin was a “great” financial decision, with MicroStrategy currently being the 347th most valuable company in the U.S.
MicroStrategy is now the 347th largest public company in the US. #Bitcoin pic.twitter.com/SpKe6N9p8s
— Bold Bitcoin (@BoldBitcoin) March 5, 2024
Notably, MicroStrategy’s (MSTR) stock has grown by 132.70% in the last month,
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