Sygnum Bank warns that Strategy’s massive Bitcoin holdings pose risks to BTC's credibility

Sygnum Bank, one of the world’s first regulated digital asset banks, has warned that the increasingly aggressive and leveraged acquisition of Bitcoin (BTC) by public companies could render it inappropriate for use as a central bank reserve.

At the center of the debate is Strategy (formerly MicroStrategy), the poster child for corporate Bitcoin accumulation. The company recently announced the purchase of another 1,045 BTC for approximately $110.2 million at an average price of $105,426 per coin. That brings its total holdings to a staggering 582,000 BTC, worth over $63 billion, equivalent to around 2.8% of Bitcoin’s fixed 21 million supply.

The corporate BTC reserve race

While Strategy and its vocal executive chairman, Michael Saylor, frame this move as long-term monetary innovation, critics like Sygnum see it differently.

In its recent report, the bank’s analysts argue that the concentration risk, combined with leveraged acquisition methods, threatens the credibility of Bitcoin as a future central bank reserve.

“Large concentrated holdings are a risk for any asset,” Sygnum’s report stated. “At this point, Strategy’s holdings are approaching a point where they become problematic… a private corporation controlling a large portion of the existing supply would make Bitcoin inappropriate for central banks to hold as a reserve asset.”

Strategy is far from alone. 144 companies have adopted Bitcoin as part of their treasury model—all of which are publicly traded. New entrants include high-profile names like Tether-backed Twenty One, Trump Media, GameStop, and K33, joining the ranks of Bitcoin-forward firms like Metaplanet and Semler Scientific.

Analysts at Bernstein estimate that this group could collectively inject up to $330 billion into Bitcoin markets over the next five years, particularly under a more crypto-friendly U.S. administration.

Central banks remain wary that Bitcoin may not be ‘reserve asset-worthy’

Sygnum’s warning can be seen as timely in some quarters, as there’s growing support for Bitcoin’s viability as a reserve asset. Advocates often reference Bitcoin’s finite supply, decentralized nature, and resistance to inflation as reasons for central banks to consider BTC alongside gold or foreign currency reserves.

According to Sygnum, corporate concentration distorts two of Bitcoin’s most important institutional traits: liquidity and volatility. As more BTC gets locked up in corporate vaults, the liquid supply shrinks, potentially increasing price swings and weakening its attractiveness as a “safe haven.”

So far, very few central banks have registered interest in Bitcoin. Beyond outliers like El Salvador, no major economy has adopted BTC as an official reserve asset.

In March, however, President Donald Trump signed an executive order creating a U.S. Strategic Bitcoin Reserve comprised of over 200,000 BTC seized in criminal proceedings, stirring new conversation about public-sector Bitcoin holdings.

Swiss National Bank Chairman Martin Schlegel dismissed the idea outright, saying BTC lacks the liquidity and stability required for such a role.

Meanwhile, central banks in Czechia, Bhutan, and Pakistan have expressed interest but remain on the sidelines.

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