Surprising Claims from the Dev Bank: "Famous Bull Michael Saylor is Not Good for Bitcoin! It Creates a Big Risk for BTC!" Here’s Why...

The largest institutional Bitcoin bull Strategy (MicroStrategy) continues its aggressive purchases.

While the buying strategy of Strategy is considered positive for BTC, there was a negative comment from the Swiss crypto bank Sygnum.

According to this, S***ygnum Bank stated in a recent report that Strategy's aggressive buying strategy could weaken Bitcoin's safe haven status.

According to the report, Strategy's goal of holding 5% of the BTC supply could weaken the suitability of Bitcoin as a reserve asset for central banks.

"The 3% share of Strategy in Bitcoin has approached problematic levels. This threatens Bitcoin's status as a reserve asset."

So far, the Strategy has purchased a total of 582,000 Bitcoin, which corresponds to nearly 3% of the BTC supply.

Banka Strategy stated that it benefits from convertible bonds to buy more BTC and also from the momentum of its own stock price during bull runs.

However, Sygnum Bank said that if the price of BTC goes into a prolonged decline and Strategy's stock price falls below the conversion prices of its circulating bonds, this structure that Stratey has set up will crack and he may have to liquidate some of his Bitcoin holdings to meet his debt obligations.

"If Strategy chooses to sell Bitcoin to avoid the additional burden that the stock decline may bring, the result could be very harmful for the market."

*This is not investment advice.

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