MoneyGram International, Inc. (NASDAQ:MGI) revealed that it has bought a 4% stake in Coinme, a cryptocurrency cash exchange currently operating in 48 U.S. states.
The companies were in partnership since May 2021 to build a crypto-to-cash model, which could allow people to buy crypto with cash or withdraw their holdings in cash. Notably, they have some more initiatives in the pipeline that are likely to continue to increase the value of the partnership.
The Chairman and CEO of MoneyGram, Alex Holmes, said, “At MoneyGram, we continue to be bullish on the vast opportunities that exist in the ever-growing world of cryptocurrency and our ability to operate as a compliant bridge to connect digital assets to local fiat currency. Our investment in Coinme further strengthens our partnership and compliments our shared vision to expand access to digital assets and cryptocurrencies.”
“We see this as an incredible opportunity to continue our strong growth and build on our leading presence in the world of crypto. With MoneyGram’s global network and infrastructure, both the Company’s continued partnership and strategic investment will help us accelerate our growth and international expansion,” said, Neil Bergquist, the CEO of Coinme.
Consensus among analysts is a Moderate Sell based on 1 Hold and 1 Sell. The average MoneyGram price target of $6 implies downside potential of 20.3% from current levels. Shares have gained 12.4% over the past year.
According to the TipRanks’ Website Traffic Tool, the MoneyGram website recorded a 0.2% monthly rise in global unique visits in November, compared to the same period last year. Also, year-to-date, the website traffic has grown 2.9%, compared to the previous year.
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