After a report by Citi downgrading Microstrategy business intelligence to sell, analysts at popular trading site Motley Fool recommended lesser known banking stocks that also focus on cryptocurrencies.
On Tuesday, Citi analyst Tyler Radek downgraded Microstrategy (NASDAQ: MSTR) shortly after the company announced it would buy back debt, raising its bitcoin holdings to nearly $ 1 billion.
The report led the company, which at one point saw stock prices more than triple from an annual low of $ 92, to its “disproportionate” focus on strengthening its Bitcoin portfolio, saying current expectations were “overstretched”.
However, Motley Fool analysts suggested in today’s merger article that the mysterious cryptocurrency-focused small capital Silvergate Capital (NYSE: SI) might be worth looking for traders looking to make money in their next crypto game.
Silvergate – a bank in La Jolla, California with more than $ 2 billion in assets under management – boasts an impressive list of cryptocurrency companies as clients, including Coinbase, Paxos, Circle, Gemini, and Polychain Capital.
Motley Fool’s authors, Matt Frankel and Justin Moser cited a 21-year profit for banks, $ 50 million in BTC in balance sheets and a credit book, mostly from commercial mortgages. Both analysts also recommend that the bank is the best investment for spot BTC.
An earlier article from Motley Fool earlier this week drew attention to the cryptocurrency exchange infrastructure Silvergate has built for its clients – the Silvergate Exchange Network (SEN). SEN acts as a 24-hour broker between exchanges and their institutional clients who buy and sell cryptocurrencies, unlike regular banks, which will be limited to normal business hours. Reportedly, SEN has liquidated more than $ 100 billion since its inception.
SI currently has a price / earnings ratio of 36.69, dividends of 10.36%, and has grown nearly 100% over the year.
Silvergate and Microstrategy aren’t the only listed blockchain stocks that are hoping to see more investor interest. Mining giant Riot Blockchain is also crying after appointing new board members.