Owning Bitcoin: A Double-Edged Sword
There are both benefits and risks associated with having Bitcoin on your balance sheet. Michael Saylor’s MicroStrategy, now referred to as Strategy, probably articulates this better than anyone.
As of March 20, 2026, the company has stashed away 761,068 Bitcoins. Meanwhile, stocks are showing mixed responses in the market, especially as Bitcoin prices continue to sway due to geopolitical factors.
At this point, Bitcoin has dipped 0.6%, sitting at $69,983. On the other hand, MSTR stock has fallen by 1.87%, trading around $135. This stock has seen a decline of over 59% in the last six months.
The latest earnings report from Strategy revealed a significant loss in the fourth quarter, largely due to the unpredictable nature of the digital asset market. The company reported a net loss of $12.4 billion, or $42.93 per share, for the quarter ending December 31, compared to a loss of $670.8 million—or $3.03 per share—during the same period last year.
In this context, some critics and analysts are questioning the viability of Strategy’s Bitcoin approach, while others remain optimistic.
Popular Texas Capital bank is reportedly supportive of Strategy, as more financial institutions start adopting Bitcoin. Analysts there believe that the company’s strategy to generate more bitcoins per share could be a key driver of long-term value.
Texas Capital estimates Bitcoin’s value will increase by about 10% annually, projecting that Strategy will raise approximately $17 billion in capital by 2026. Based on these assumptions, they’ve set a price target of $200 for the company, which would signify a roughly 48% increase from current levels.
The brokerage also assigned a Buy rating to Strategy, noting its relatively conservative approach with about 14% of its equity in debt and around $2.25 billion in cash. This positions the company well for nearly two years of interest and dividend payments while also mitigating market volatility.
Texas Capital highlighted the fragmented nature of the digital asset landscape, with over 30 publicly traded treasury firms. They suggest that Strategy could benefit from market consolidation during downturns, especially given that the company’s digital credit products yield an average of around 11.5%.
Policy developments might also serve as a tailwind, as ongoing and proposed regulations in the U.S. aim to clarify cryptocurrency rules and improve institutional access. Texas Capital stated, “We believe favorable regulatory changes and increased market adoption have made Bitcoin a more established asset than many investors realize.”
However, the company also cautioned that Strategy’s dependence on external funding—due to Bitcoin’s lack of yield—and possible technical vulnerabilities in the crypto space could pose risks. Still, they noted that the company’s strong liquidity, access to capital markets, and scale help address these concerns.
