Coinbase Surges as JMP Securities Raises Price Target Amid Bitcoin ETF Inflows

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Coinbase, a major US crypto-exchange company, has experienced a record-breaking increase in its share price, amidst the bullish state of Bitcoin ETFs and the crypto market. This surge followed after JMP Securities, an investment banking and asset management firm increased the target price of Coinbase shares to $300.

JMP Securities Raises Coinbase’s Price Objective

JMP Securities analyst Devin Ryan revised the target price for Coinbase Global Inc. (NASDAQ: COIN) from $220 to $300 on March 13th. Ryan mentioned that the possible future for the regulated market will contain Coinbase being the surveillance partner and custodian for spot Bitcoin ETFs driving growth.

This price correction happened at a time when there’s tremendously high institutional demand for cryptocurrency investment and the spot Bitcoin ETFs are bringing in a lot of capital flows.

JMP Securities anticipates that the total inflows to spot Bitcoin ETFs will be between $200 to $220 billion over the next three years. This forecast followed the influx of institutional investments, during the course of which assets under management in Bitcoin ETFs surpassed the $58 billion mark within two months.

The last market sentiment shift towards Coinbase occurred simultaneously with spot Bitcoin ETFs performing well, especially BlackRock and Fidelity Bitcoin ETFs strongly influencing institutional inflow. Investment banking giants such as Goldman Sachs upgraded their rating on Coinbase shares, adjusting their price target to $282. 

And like that, Raymond James upgraded Coinbase from “underperform” to “market perform” indicating the growing confidence in the company’s future.

Coinbase’s Strategic Initiatives and Fundraising Plans

On March 12 Coinbase officially announced its plan to issue $1 billion worth of convertible senior notes, similar to Michael Saylor’s MicroStrategy, to repay debts and for general business purposes.

Through the issuing of convertible notes, Coinbase can tap into capital while investors can also get the option to exchange the debt notes with the company shares at a later time. This measure is in line with Coinbase’s strategy of shoring up its financial base and targeting strategic growth.

ARK Invest Sell-off

Yes, Coinbase is doing well, but ARK funds managed by Cathie Wood took a profit-taking position after Coinbase shares went up in price. 

ARK Invest sold off 270,000 Coinbase shares valued at nearly $69 million on Monday, while they were also seen selling 106,000 shares valued at around $27 million on Tuesday. Despite this, Coinbase’s price has risen an impressive 63% during that period, ending Tuesday at $256.14.

In short …

Coinbase’s strategic actions, such as the issuance of convertible notes, demonstrate the company’s determination to benefit from market trends while making the business robust. The evolution of institutional participation is likely to see Coinbase rise to the position of a market leader, driving the future of the cryptocurrency environment.