Barclays starts coverage on MicroStrategy stock, upgrades COIN, HOOD

Barclays analysts on Monday started research coverage on MicroStrategy (MSTR) with an Overweight rating and a price target of $146.

The firm views MicroStrategy as a superior option for investors seeking Bitcoin exposure through public companies.

According to Barclays, the company has utilized the cash flows and balance sheet from its established business intelligence software operations to acquire approximately $13 billion worth of Bitcoin.

“In essence, MSTR feels like a BTC index fund that is also capable of generating its own investment capital, such that investors not only gain exposure to the underlying BTC asset price, but also benefit from future self-funded accumulation,” analysts said in a note.

“And with a ~1.6% blended average cost of (mostly convertible) debt, and maturities staggered out to 2032, MSTR's strategy appears capable of withstanding quite a bit of liquidity-related stress from potential future "crypto winters”,” they added.

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

These crypto-related companies were recognized for their significant development in expanding product offerings and improving profit and loss statements.

Coinbase, in particular, has shown resilience in revenue amid a more favorable regulatory environment and the approval of various spot crypto ETFs, which Barclays sees as a positive indicator for the industry.

For Robinhood, Barclays notes the ongoing maturity of its business model and anticipates potential upside from new products, geographic expansion, and new channels, including institutional offerings following the Bitstamp acquisition.

“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,” analysts said.

Source: Investing.com