After Citi downgraded commercial intelligence firm MicroStrategy, analysts at popular trading site Motley Fool suggested a lesser-known Bank stake focused on cryptocurrency.
Citi analyst Tyler Radke downgraded MicroStrategy (NASDAQ: MSTR) last Tuesday after the company announced it would buy more Bitcoins.
In the report, the company was criticised for being “overly focused” on Bitcoin, whose stock price rose more than three times to $ 92.
Motley Fool analysts noted that less well-known and crypto Silvergate Capital (NYSE: SI) could be a good option for investors looking to make a profit.
Silvergate, the California-based bank with more than $ 2 billion in Managed Assets, has an impressive client list that includes cryptocurrency companies such as Coinbase, Paxos, Circle, Gemini and Polychain Capital.
Matt Frankel and Justin Moser, contributors to Motley Fool, noted that the bank has been making steady profits for 21 years and has $ 50 million worth of Bitcoin. Both analysts said the bank was a superior option to invest in Bitcoin.
Silvergate’s crypto exchange infrastructure for its customers was also noted in a recent report by Motley Fool, The Silvergate Exchange Network (SEN). SEN operates as an intermediary between exchanges and cryptocurrency customers, unlike regular banks, which are limited to regular operating hours. Sen is claimed to have reached over $ 100 billion in volume since its launch.