The recent hack of crypto exchange Bybit highlights the value of self-custody wallets

The recent hack of crypto exchange Bybit highlights the value of self-custody wallets, broker Benchmark said in a Wednesday report

The recent hack of crypto exchange Bybit may be leading to heightened interest in self-custody wallets, broker Benchmark said Wednesday in a report where it initiated coverage of Exodus Movement (EXOD) with a buy rating and a $38 price target.

The shares rose 5.7% to $25.89 in early trading.

The Nebraska-based company has the "right product at the right time," wrote analyst Mark Palmer, adding that the company is also performing well despite the recent weakness in the stock, which has seen it lose more than 60% of its market cap in the last five weeks.

This weakness isn't linked to concerns about the firm's operating performance, the report noted, as the company posted strong fourth-quarter results earlier this month.

Exodus Movement gets most of its revenue from its exchange aggregation feature, Benchmark said, and its "wallet-as-a-service" business leverages this technology in its crypto swap engine, which is integrated with platforms such as Ledger and Magic Eden.

The stock began trading on the NYSE American, the New York Stock Exchange's sibling market, in December last year.

Now traders are waiting for the company to report first-quarter earnings, which are due in the coming weeks.

The SEC had previously denied approval for the company's listing, but later granted it in May.