There are perks and perils of holding Bitcoin (NASDAQ: BTC) in the balance sheet.
And who can tell it better than Michael Saylor's MicroStrategy, now better known as Strategy (NASDAQ: MSTR).
As of March 20, Strategy held 761,068 Bitcoin in its coffers.
The stock has been experiencing the highs and lows of the mixed market sentiments, especially as Bitcoin continues to move according to geopolitical uncertainties.
Related: MicroStrategy CEO reveals stunning 3x gap between Wall Street giants
At press time, Bitcoin was down 0.6% to $69,983. Meanwhile, MSTR stock was down 1.87%, trading near $135.
In the past six months, the stock has dropped by more than 59%.
In its last earnings report , Strategy posted a wider fourth-quarter loss, reflecting volatility in digital asset markets. The company recorded a net loss of $12.4 billion, or $42.93 per share, for the quarter ending Dec. 31, compared with a loss of $670.8 million, or $3.03 per share, in the same period a year earlier.
In this scenario, while critics question Strategy's Bitcoin strategy, some analysts are finding it bullish.
Related: MicroStrategy surges after MSCI stalls delisting
Texas bank predicts new price target
Popular regional bank Texas Capital hailed Strategy's position as a leading digital asset treasury manager as institutions increasingly adopt Bitcoin.
Texas analysts view the firm's strategy of increasing Bitcoin per share as a long-term value driver.
Texas Capital projects Bitcoin will grow around 10% annually and expects Strategy to issue roughly $17 billion in capital in 2026.
Using these assumptions and applying a 1.19x multiple to net asset value, the firm arrived at a $200 stock price target. At the current price, it is roughly 48% upside.
Texas Capital also assigned Strategy a "Buy" rating.
The brokerage noted that Strategy maintains a relatively conservative balance sheet, with debt accounting for about 14% of its capital and holding approximately $2.25 billion in cash.
This provides nearly two years of coverage for interest and dividend payments, offering a cushion during volatile market conditions.
Texas Capital also highlighted the fragmented landscape of over 30 publicly listed digital asset treasury firms, suggesting Strategy could benefit if capital consolidates into larger, more liquid players during market downturns. The company's digital credit products currently generate an average yield of about 11.5%, the note added.
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Regulatory clarity paves the way for MSTR
Policy developments were cited as another potential tailwind, with ongoing and proposed measures in the United States aimed at clarifying crypto regulations and improving institutional access.
"Due to a favorable regulatory shift with the Trump administration and the broadening of financial market and corporate adoption, we believe Bitcoin has become a more established asset than many investors appreciate,"Texas Capital said.
However, the firm flagged risks, including Strategy's dependence on external financing due to Bitcoin's lack of yield, as well as potential technological vulnerabilities in the crypto space.
Despite this, it said the company's liquidity position, access to capital markets and scale help mitigate these concerns.
Related: The only thing better than Bitcoin is...MSTR?
This story was originally published by TheStreet on Mar 20, 2026, where it first appeared in the Investing section. Add TheStreet as a Preferred Source by clicking here.
