From Nasdaq: 2024-05-09 05:20:00

Bitcoin’s price has doubled in the past year thanks to ETF approvals, mining changes, and stable interest rates. Coinbase and MicroStrategy stocks have surged over 270% as a result. Coinbase’s revenue soared in 2021 but fell in 2022-23 before stabilizing in Q4 2023. Analysts expect an 80% revenue increase in 2024.

Coinbase’s main revenue source is transaction fees, with a 34% volume from Bitcoin and 20% from Ether in 2023. Despite falling revenue in recent years, stabilization in Q4 2023 and Q1 2024 is encouraging. Expenses have been cut, and the adjusted EBITDA margin increased. Analysts expect the margin to rise to 49% in 2024.

MicroStrategy bought $7.54 billion worth of Bitcoin, with holdings now valued at $13.8 billion contributing significantly to its enterprise value of $25.3 billion. The company continues to accumulate debt for Bitcoin purchases, leading to uncertainty in its profit outlook. Analysts expect a 1% revenue dip in 2024.

Coinbase is poised to remain a key player in the crypto market, offering better growth and valuation prospects than MicroStrategy. Coinbase’s stock is seen as a more promising long-term investment due to its growth and lower valuations. Investors are advised to consider the potential for high returns from Coinbase’s stock.

Read more at Nasdaq: Better Crypto Stock: Coinbase Global vs. MicroStrategy