New York-based investment bank H.C. Wainwright has initiated a “buy” rating on publicly traded Coinbase Global Inc., the largest cryptocurrency exchange in the U.S., saying the company is poised to benefit from growth in the global digital asset economy as the so-called “crypto winter” of falling prices is over, according to a Wednesday release by the bank.

See related article: Coinbase ups the ante with SEC, asking court to require crypto clarity from regulator

Fast facts

  • Mike Colonnese, an analyst at Wainwright, wrote that crypto prices have rallied 45% so far this year, supported by a 67% increase in Bitcoin (BTC) prices, “indicating to us that crypto winter is over and that we have likely now entered BTC’s next bull price cycle (not baked into current estimates).”
  • Wainwright initiated the coverage of Coinbase on Wednesday with a “Buy” rating, saying “rewards outweigh risks at these prices.”
  • Coinbase’s stock on Nasdaq closed 2.99% lower on Wednesday at US$53.89, down 85% from its peak in November 2021. However, Wainwright analysts said that the current price levels offer an attractive entry point for investors, as the stock now trades at a 35% discount to historical levels.
  • “We believe Coinbase is uniquely positioned to benefit from the large and rapidly growing global crypto economy given its trusted brand, easy to use products, and focus on compliance and regulation, and we expect the company to gain market share in 2023,” Colonnese wrote.
  • On Monday, Coinbase sued the U.S. Securities and Exchange Commission, asking that the regulator be required by a court to respond to its July 2022 petition that sought clearer crypto regulation guidelines.

See related story: SEC warns Coinbase of potential legal action over staking, separately targets Tron founder Sun