Regulated digital asset bank Sygnum has stated that Strategy is accumulating an outsized BTC position through leverage, but this approach may distort liquidity and sentiment, posing long-term risks to Bitcoin’s stability and its broader adoption by institutional allocators. This could ultimately undermine Bitcoin’s suitability as a central bank reserve asset. Analysts believe that Strategy’s holdings are approaching a critical threshold, with the company owning nearly 3% of Bitcoin’s total issuance, but accounting for a much higher proportion of the actual circulating supply.