Amid the boom in the cryptocurrency world, Oppenheimer analyst Owen Lau pointed out that integrating crypto is the real game changer. For example, we have Coinbase and UWM Holdings.
In fact, the crypto train has once again left the station. Which indicates that the recent drop is a small mistake in the bull market. Recently, several events have boosted confidence in cryptocurrencies.
To better understand, in 2008 the mysterious Satoshi Nakamoto started the locomotive of the train in the direction of station number 1. Where he stopped to assemble his “White Paper”. This is where it all started.
Oddly enough, the crypto train continues to pass and will continue to pass, taking people into the future. Remember that the path that leads us is discovery.
UWM Holdings joins crypto integration
Last week, UWM Holdings announced that it will soon start accepting Bitcoin payments. Which marks another step towards crypto integration.
Specifically, UWM Holdings Corp, the second-largest mortgage lender in the United States, said it plans to accept cryptocurrencies to make the mortgage payment this year.
In this regard, Mat Ishbia, CEO of UWM, said: “I think we are starting with Bitcoin, but we are looking at Ethereum and other cryptocurrencies.”
“We are evaluating the feasibility and requirements in order to accept cryptocurrency to meet mortgage payments.” – @ Mishbia15
– United Wholesale Mortgage (@UWMlending) August 16, 2021
Coinbase Approves $ 500 Million Cryptocurrency Purchase
Coinbase (COIN) announced that the board of directors has approved the purchase of $ 500 million of cryptocurrency to be added to the balance sheet. CEO Brian Armstrong revealed the news of the purchase in a tweet. Another stepping stone towards the integration of crypto.
We recently received board approval to purchase over $ 500 million worth of crypto on our balance sheet to add to our existing holdings. And we will invest 10% of all profits in the future in crypto. I expect this percentage to continue to increase over time as the crypto economy matures.
– Brian Armstrong (@brian_armstrong) August 19, 2021
However, the company also said it intends to build a portfolio of crypto assets, allocating 10% of its quarterly profits to the effort. Additionally, in the long run, Coinbase hopes to further integrate cryptocurrencies into its day-to-day operations.
“And we’re going to invest 10% of all profits going forward in crypto. Hopefully, this percentage will continue to grow as the crypto economy matures.
In this regard, Owen Lau points out that it could mean paying its suppliers and employees in cryptocurrencies, among other “financial transactions”.
“Buying cryptocurrencies on the balance sheet is definitely a testimonial. But, further integration into COIN’s business practice has a deeper influence not only on COIN but on the entire crypto economy. COIN is well positioned to introduce new products, support retail crypto transactions, and influence the adoption of crypto in institutional transactions.
Coinbase has moved since going public
In particular, since Coinbase went public in April, its stock price movements have closely tracked those of Bitcoin. In fact, Lau does not expect the “correlation to decrease significantly in the near future.”
Overall, Lau reiterated an outperformance (i.e. buy) rating on COIN stocks. While staying at a price target of $ 444. Lau expects Coinbase Global to post earnings per share (EPS) of $ 7.77 for the third quarter of 2021.
I end with this sentence from Andrés Tejero: “The crypto train is approaching its next stop.
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