Sygnum warns that the concentration of Strategy Bitcoin Holdings may hinder Central Bank adoption

Gate News bot news, a report from the regulated digital asset bank Sygnum shows that companies adopting Bitcoin strategies, such as Strategy (formerly MicroStrategy), have significantly increased institutional demand for Bitcoin. However, their increasingly aggressive and leveraged BTC accumulation strategies may undermine the credibility of this asset as a Central Bank reserve.

Currently, 144 companies have adopted some form of Bitcoin financial strategy, of which 114 are publicly listed, including Tether-supported Twenty One, Satoshi Nakamoto, Trump Media (Trump Media), GameStop, and K33. Recently, they have also joined the ranks of companies like Metaplanet, Semler Scientific, and KULR, adopting a model pioneered by Strategy co-founder Michael Saylor. Analysts at Bernstein (Bernstein) predict that driven by the more crypto-friendly stance of the Trump administration in the U.S., the Bitcoin gold reserves of Strategy and its future successors could increase by $33 billion over the next five years.

As Strategy plans to gradually expand its holdings through various billion-dollar financial projects, Sygnum warns that this concentration of positions could lead to systemic vulnerabilities and may prevent central banks from adopting Bitcoin due to concerns about liquidity, volatility, and centralized influence.

"Holding a large amount of any asset is a risk, and Strategy's position is currently nearing a critical point where issues may arise. The company holds nearly 3% of the total Bitcoin ever issued, but its proportion of the actual circulating supply is much higher," said a Sygnum analyst. "Their goal of acquiring 5% of the total Bitcoin issuance has raised concerns, especially because these instruments have accumulated too much supply, undermining Bitcoin's hedging properties. A private company controls a large portion of the existing supply, making Bitcoin unsuitable for Central Banks to hold as a reserve asset."