As bitcoin, ethereum, and other cryptocurrencies garner increasing interest from investors, traditional financial institutions on Wall Street are adapting to this changing landscape. This week’s roundup highlights key developments at the intersection of these established financial systems and the emerging world of cryptocurrencies, as compiled by The Fly.
COINBASE AND SHOPIFY JOIN FORCES FOR USDC PAYMENTS
On Thursday, Coinbase announced a collaboration with Shopify aimed at facilitating cryptocurrency transactions. The partnership is designed to enable Shopify merchants to accept USDC payments through the Base platform. Early access merchants are set to begin using this feature, with plans to roll it out globally later this year. Shopify selected Base for its ability to provide rapid, cost-effective, and secure onchain transactions worldwide. This initiative marks a significant advancement in Base’s goal of onboarding a billion users to the blockchain. Additionally, during its State of Crypto Conference, Coinbase unveiled the Coinbase One Card, which will provide users with up to 4% bitcoin back on purchases. This card, created in collaboration with Cardless and issued by First Electronic Bank, aims to blend the appeal of crypto rewards with the reliability of the American Express network. Will Stredwick, SVP of global network services at American Express, emphasized the potential of merging Coinbase’s crypto services with American Express’s backing, delivering a compelling offering for consumers. Coinbase also announced plans to launch a Coinbase Business platform later this year, designed to facilitate financial operations for small to medium-sized enterprises by providing a comprehensive solution for payments, crypto asset management, and automated payouts within a secure account.
BANK OF AMERICA INCREASES COINBASE PRICE TARGET
On Friday, Bank of America raised its price target for Coinbase shares from $216 to $259 while maintaining a Neutral rating. The firm anticipates that the ongoing discussions around the GENIUS and CLARITY Acts will lead to regulatory clarity soon, which could enhance participation in the crypto sector. Consequently, Bank of America is adjusting its valuations and increasing estimates for Coinbase’s institutional business. However, while optimistic about regulatory developments, the bank views the retail trading environment as nearing its peak and believes Coinbase’s stock valuation reflects full pricing relative to its long-term growth potential. Meanwhile, on Wednesday, William Blair initiated coverage of Coinbase with an Outperform rating, highlighting the rapidly evolving crypto industry, which is expected to experience sustained growth. The firm views this as an exit from the fringes of finance, with Coinbase positioned favorably to capitalize on this transition.
BITCOIN DEPOT ACQUIRES PELICOIN ASSETS
Bitcoin Depot announced on Wednesday that it has acquired the assets of Pelicoin, a New Orleans-based operator of crypto ATMs. This acquisition is expected to expand Bitcoin Depot’s network across Louisiana, Mississippi, Tennessee, Alabama, and Texas, enhancing its presence in the Gulf South. Bitcoin Depot plans to integrate Pelicoin’s ATMs into its existing platform, rebranding all locations. Brandon Mintz, CEO of Bitcoin Depot, described Pelicoin as a strategic addition that allows the company to enhance its operations in a region with significant growth potential. This acquisition fits within Bitcoin Depot’s broader strategy to consolidate a fragmented market and solidify its leadership in cash-to-crypto services nationwide. Following the announcement, Northland raised its price target for Bitcoin Depot from $7 to $8.50, maintaining an Outperform rating, viewing the acquisition as evidence of successful execution of its growth strategy.
STRATEGY INCREASES BITCOIN HOLDINGS
On Monday, Strategy disclosed updates regarding its at-the-market offering programs and bitcoin holdings. The firm raised $112.2 million and acquired 1,045 bitcoins for a total of $110.2 million over the period from June 2 to June 8. As of June 8, Strategy’s total bitcoin holdings reached 582,000.
JPMORGAN ADJUSTS PRICE TARGETS FOR BITCOIN MINERS
On Friday, JPMorgan updated its price targets for various bitcoin mining companies, raising Riot Platforms’ target from $13 to $14 while retaining an Overweight rating. The firm adjusted its targets and models based on Q1 performance, fluctuations in bitcoin prices, and network hashrate changes. Similarly, JPMorgan increased the price target for Mara Holdings from $18 to $19 and maintained a Neutral rating for the shares. CleanSpark’s target was raised from $12 to $14, with an Overweight rating upheld.
WALMART AND AMAZON CONSIDER STABLECOINS
Walmart, Amazon, and other major corporations, including Expedia Group and certain airlines, are reportedly exploring the issuance of their own stablecoins in the U.S., according to sources cited by the Wall Street Journal. The development of stablecoins could enable these merchants to navigate traditional payment barriers and streamline transaction processes.
OTHER CRYPTO NEWS
In the realm of crypto stocks, notable publicly traded companies include Bit Digital, Coinbase, Core Scientific, Greenidge Generation, Mara Holdings, Strategy, Riot Platforms, and TeraWulf.
PRICE ACTION
As of the latest reports, bitcoin’s price remained stable this week at approximately $104,990.
