In recent years, Bitcoin hoarding (such as listed companies, funds, etc.) has indeed successfully driven market demand, but their aggressive accumulation strategy may be weakening Bitcoin's appeal as a long-term institutional asset.

This is the view in the latest analysis report released by Swiss digital asset bank Sygnum on Tuesday.

Although these acquisition vehicles support market demand, Sygnum warned that Strategy (formerly MicroStrategy)'s attempt to grasp 5% of Bitcoin's total supply may undermine its status as a "safe haven asset" and no longer be suitable as a reserve asset for the central bank.

Just this Monday, Strategy purchased another 1,045 Bitcoins, worth about $110 million, bringing its current total holdings to 582,000 BTC, close to 3% of Bitcoin's final total supply.

Strategy (formerly MicroStrategy) announced last Friday that it would raise $1 billion from $250 million for its perpetual preferred stock called STRD, priced at $85 per share, with an annual dividend rate of 10% (non-cumulative). The company said it expects to receive $979 million in net proceeds from the offering, which will be used to continue to increase its holdings of Bitcoin.

Although this has boosted Bitcoin prices and market volume, Sygnum warned that this concentration is close to dangerous levels.

"There are risks with large-scale concentrated holdings of any asset, and Strategy's holdings are close to being problematic."

In addition, Strategy's shaping of its leveraged, large-scale holding strategy as the "new normal" may also obscure the rationality of a smaller, risk-adjusted allocation strategy, which is a more suitable approach for most companies.

According to Sherwood's analysis, Strategy's model is essentially a high-beta alternative target: buying Bitcoin through convertible bond financing and using its own stock price gains in a bull market to gain momentum.

Whenever Bitcoin rises, Strategy's stock MSTR will trade at a premium, and the company can use this to raise funds to buy more Bitcoin, forming a positive cycle.

However, Sygnum pointed out that the risks of this model are also clear. If Bitcoin enters a long-term downward cycle and MSTR's stock price falls below the conversion price of convertible bonds, the company may be forced to sell Bitcoin to repay debts, thus breaking the original model.

"Although the dividend design of perpetual stocks reduces the risk of leveraged purchases to a certain extent (due to synchronized profits and losses), once Strategy chooses to sell Bitcoin to avoid the drag of stock price discounts, it will send a very lethal signal to the market."