Sygnum Warns Strategy’s Aggressive Bitcoin Buying Could Undermine Its Reserve Asset Appeal

As corporate bitcoin holdings continue to swell, Sygnum—a regulated digital asset bank—is raising red flags about the risks of concentrated ownership. In a new report, Sygnum warns that bitcoin acquisition vehicles like Strategy (formerly MicroStrategy) may be distorting the market, threatening bitcoin’s long-term credibility as a central bank reserve.

Strategy recently disclosed the purchase of another 1,045 BTC for roughly $110 million, bringing its total holdings to 582,000 BTC—about 2.8% of bitcoin’s fixed 21 million supply. At current market prices, that’s over $63 billion in value and an estimated $22 billion in paper gains. This aggressive accumulation, according to Sygnum, risks turning bitcoin from a decentralized hedge into a highly leveraged speculative asset.

“Large concentrated holdings are a risk for any asset,” Sygnum analysts noted. “Strategy’s near 3% share of all bitcoin ever issued—and even more of the liquid supply—could make bitcoin inappropriate as a central bank reserve.”

The Swiss bank isn’t alone in its concern. While 144 companies now hold bitcoin in their treasuries—including names like Tether-backed Twenty One, Nakamoto, Trump Media, and GameStop—many are mimicking the high-leverage, high-risk model popularized by Strategy co-founder Michael Saylor. Analysts at Bernstein estimate that Strategy and its imitators could amass an additional $330 billion in bitcoin over the next five years, particularly under a more crypto-friendly Trump administration.

But Sygnum argues that this approach has strayed far from responsible treasury management. Once a way to hedge inflation, these strategies now rely on convertible bonds, perpetuals, and preferred shares to buy bitcoin at levels far beyond the companies’ operating capacity. The result: a new breed of firms behaving more like crypto investment funds than traditional businesses.

According to Sygnum, this leverage-heavy model could backfire. A tightening market, failed capital raises, or prolonged downturn could force some of these firms to offload bitcoin, accelerating price crashes and eroding investor trust. The fallout could extend beyond individual companies, harming broader market sentiment and crowding out more balanced, long-term adoption strategies.

Bitcoin’s value proposition as a reserve asset—especially for central banks—rests on two key features: liquidity and stability. When a handful of private firms dominate the supply, particularly through debt-financed buying, both attributes come under pressure.

Sygnum points out that while countries like El Salvador have made headlines for adopting bitcoin, most central banks remain cautious. Recent steps by the U.S.—including President Trump’s executive order to create a Strategic Bitcoin Reserve from 200,000 government-seized BTC—suggest growing interest. But such interest may wane if bitcoin continues to be defined by speculative accumulation rather than sound financial strategy.

Still, Strategy remains confident in its model. Speaking to the Financial Times, Saylor said the company is built to withstand a 90% drop in bitcoin prices for up to five years, thanks to its capital mix of equity and long-dated debt. Analysts at Bernstein support this view, noting that Strategy’s next major debt obligations don’t come due until 2028.

Even so, Sygnum cautions that not every copycat has Strategy’s balance sheet or investor base. As more firms pile in, the chance of missteps grows—along with the risks to bitcoin’s perceived stability.