Berenberg's Mark Palmer started Microstrategy, Inc. (NASDAQ: MSTR) with a Buy rating and $430 price target in a research note Friday, telling investors it is an interesting way to play Bitcoin.

He also explained that the rating and price target are "based on a sum-of-the-parts analysis that combines (1) our estimate of the mid-year 2024 value of the company's bitcoin holdings and (2) our estimate of the year-end 2024 value of its business intelligence software business."

MSTR "offers a unique business model," stated Palmer, with the company focused on the acquisition and holding of bitcoins and its software business serving in a supporting role and a generator of cash flow used for the purchase of additional bitcoins.

"MSTR shares offer an alternative means of gaining exposure to the cryptocurrency at a time when its characterization by U.S. government entities has distinguished it from other, less decentralized crypto tokens. We believe several factors could enable bitcoin's price to continue to appreciate meaningfully during the coming months," the analyst added.

"Meanwhile, the relative attractiveness of bitcoin has been enhanced by the ongoing crackdown on the crypto space by U.S. government entities."

By Sam Boughedda