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Earlier this month Wells Fargo & Company issued a series of fixed-rate, callable senior unsecured notes maturing between 2030 and 2041, alongside news that it had recently accumulated substantial amounts of Bitcoin amid a period of uncertainty in cryptocurrency markets.
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This combination of fresh long-dated funding and a sizeable Bitcoin position marks an unusual move for a major U.S. bank, highlighting Wells Fargo’s willingness to use both traditional bonds and digital assets in its balance sheet strategy.
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We’ll now examine how Wells Fargo’s sizeable Bitcoin accumulation could interact with its existing earnings-focused narrative and long-term return objectives.
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To own Wells Fargo today, you need to believe it can keep turning its large deposit base and lending franchise into steady earnings while managing regulation and technology change. The key near term catalyst remains upcoming earnings and management commentary on net interest margins, while the biggest risk is still regulatory and compliance pressure. The new bond issuance and Bitcoin accumulation are unlikely to materially change that risk reward balance in the short term.
The most relevant recent update here is Wells Fargo’s plan to redeem its Floating Rate Junior Subordinated Deferrable Interest Debentures due 2027 in early 2026, following on from sizable common share buybacks. Together with the fresh long dated senior notes and the new Bitcoin exposure, this gives investors more to watch around funding costs, balance sheet mix and how those might interact with future earnings and capital return plans.
Yet investors should also weigh how ongoing regulatory and compliance obligations could still affect…
Read the full narrative on Wells Fargo (it’s free!)
Wells Fargo’s narrative projects $90.6 billion revenue and $22.1 billion earnings by 2028. This requires 5.3% yearly revenue growth and a $2.6 billion earnings increase from $19.5 billion today.
Uncover how Wells Fargo’s forecasts yield a $100.00 fair value, a 4% upside to its current price.
Six members of the Simply Wall St Community value Wells Fargo between US$74.70 and US$121.93, underlining how far opinions can diverge. You should weigh those views against the earnings focused catalyst and the ongoing regulatory risk that could influence how the story plays out over time, and explore several viewpoints before forming your own.
Explore 6 other fair value estimates on Wells Fargo – why the stock might be worth as much as 27% more than the current price!
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include WFC.
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