Barclays analyst Ramsey El-Assal initiated coverage on MicroStrategy Inc MSTR with an Overweight rating and a price target of $146.

El-Assal flagged the company’s unique differentiated vehicle that allows public company investors to gain exposure to bitcoin, resilient capital deployment model offering a long runway for continued bitcoin accumulation and protection from black swan liquidity events, software performance backed by a fast-growing TAM and demand for next-gen technology, the mix shift towards subscription services leading to higher-margin and recurring revenue and the software business’ high retention rates.

According to the analyst, MicroStrategy is the superior option for public-company investors looking for Bitcoin exposure.

The analyst flagged the company’s success in channeling the cash flows and balance sheet of a well-established business intelligence software provider to amass a ~$13 billion bitcoin pile.

El-Assal compared MicroStrategy to a bitcoin index fund capable of generating its own investment capital, helping investors gain exposure to the underlying bitcoin asset price and benefit from future self-funded accumulation.

MicroStrategy’s strategy appears capable of withstanding quite a bit of liquidity-related stress from potential future “crypto winters,” the analyst said, citing the blended average cost of debt and maturities.

The analyst projected fiscal 2024 revenue of $474 million and EPS loss of $(1.58).

Price Action: MSTR stock traded lower by 2.85% at $116.16 at he last check Friday.

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