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Mon, Jun 16, 2025, 11:40 AM 4 min read
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Bitcoin accumulation by public corporations continues to attract scrutiny as more firms burst on the scene. In the latest instance, digital asset bank Sygnum has warned that MicroStrategy’s (NASDAQ:MSTR) aggressive Bitcoin accumulation could undermine the asset’s potential as a reserve asset for central banks and other institutions.
In the past five years, MicroStrategy has accumulated 582,000 BTC, representing nearly 3% of the total Bitcoin supply. The firm is not showing any signs of slowing down, with new purchases announced almost every week. In the most recent instance, MicroStrategy announced the purchase of 1,045 BTC for approximately $110.2 million.
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“Large concentrated holdings are a risk for any asset and at this point [Micro] Strategy’s holdings are approaching a point where they become problematic, with the company holding close to 3% of the total bitcoin ever issued, but a much higher share of the actual liquid supply,” Sygnum said on Tuesday.
The digital asset bank said that the hit to liquid supply could reverse positive Bitcoin trends, such as declining volatility and increasing liquidity. These are factors often considered when selecting a reserve asset.
“Their [MicroStrategy’s] goal of acquiring 5% of the total issued bitcoin raises concerns, not least because these vehicles amassing too much of the supply undermines bitcoin’s safe haven properties,” Sygnum said. “A private corporation controlling a large portion of the existing supply would make bitcoin inappropriate for central banks to hold as a reserve asset.”
Beyond hampering the dream of Bitcoin becoming a global reserve asset, Sygnum said MicroStrategy’s model posed “certain risks for the crypto market as a whole,” echoing recent sentiments from Standard Chartered.
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For one, the bank said that the leveraged strategies popularized by MicroStrategy are unsustainable, arguing that share premiums to BTC are likely to disappear as more firms copy the model and investor interest dissipates. The bank added that a prolonged market downturn or difficulties raising new funds could force the Bitcoin treasury firms to sell their holdings.
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