Barclays Initiates Coverage on MicroStrategy with Overweight Rating

On Monday, Barclays analysts began research coverage on MicroStrategy (MSTR), assigning it an Overweight rating with a price target of $146.

The firm considers MicroStrategy a leading choice for investors looking for Bitcoin exposure through publicly traded companies. They noted that the company has leveraged cash flows and its balance sheet from its core business intelligence software operations to amass roughly $13 billion in Bitcoin.

According to Barclays, “In essence, MSTR feels like a BTC index fund that is also capable of generating its own investment capital,” giving investors exposure to the underlying Bitcoin asset price while benefiting from future self-funded accumulation.

They also pointed out that with a ~1.6% blended average cost of mostly convertible debt, which matures staggered out to 2032, MicroStrategy’s strategy seems resilient enough to manage liquidity-related stress during potential future “crypto winters.”

In a separate note, Barclays upgraded ratings for Robinhood Markets (NASDAQ:HOOD) and Coinbase Global (NASDAQ:COIN) to Equal Weight.

These crypto-focused companies have been acknowledged for their significant strides in expanding product offerings and improving financial statements. Notably, Coinbase has demonstrated revenue resilience due to a more favorable regulatory climate and the approval of various spot crypto ETFs, serving as a positive indicator for the industry.

Barclays also noted that Robinhood’s business model is maturing, with expected upsides from new products, geographic expansions, and new channels, including institutional offerings following their acquisition of Bitstamp.

Analysts summarized, “In short, the factors that drove our Underweight ratings are increasingly turning around, and we now see the risk/reward for both stocks as more balanced.”