**Retail Investors Face $17 Billion Losses Through Bitcoin Treasury Stock Exposure**
A recent report from 10X Research reveals that retail investors have lost approximately $17 billion after investing in Bitcoin Treasury companies. These companies raised a staggering $86 billion in 2025 by issuing shares to buy Bitcoin, a figure that surpasses the total capital raised by U.S. IPOs this year. However, as Bitcoin’s rally has cooled, many investors are now facing significant losses.
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### Bitcoin Treasury Stocks Decline Amid Shifting Market Sentiment
Retail investors turned to Bitcoin Treasury Companies (DATCOs) such as MicroStrategy (now known as Strategy) and Tokyo-based Metaplanet to gain indirect exposure to Bitcoin. These firms issued shares at premiums above their net asset values, using the proceeds to purchase Bitcoin. This approach boosted company valuations during Bitcoin’s bull market.
However, as Bitcoin’s momentum slowed, the stock prices of these firms plummeted. Many shareholders who bought in at premium prices now find themselves holding losses rather than gains. The 10X Research report highlights that inflated equity premiums caused investors to overpay by around $20 billion, which have since collapsed.
> “Those once-celebrated NAV premiums have collapsed, leaving investors holding the empty cup while executives walked away with the gold,” noted 10X Research.
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### Bitcoin-Linked Equities Struggle Despite Cryptocurrency’s Surge
While Bitcoin recently reached a new all-time high above $126,000, shares of companies linked to the cryptocurrency have underperformed significantly. Strategy’s (formerly MicroStrategy) stock has declined over 20% since August. Metaplanet experienced an even sharper drop, losing more than 60% of its value.
Investor confidence, measured by the market-to-net-asset-value (mNAV) ratio, has weakened. Strategy now trades at about 1.4 times the value of its Bitcoin holdings, whereas Metaplanet has fallen below the 1.0x mark—meaning some stocks are trading for less than the value of their Bitcoin assets. Approximately one-fifth of all listed Bitcoin Treasury firms are currently trading below their net asset values.
This trend has ignited concerns among analysts about the sustainability of the Bitcoin Treasury business model in the current market climate.
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### The Rise and Fall of the Bitcoin Treasury Strategy
During Bitcoin’s bull run, DATCOs raised billions by issuing shares that traded above their Bitcoin holdings’ value. The capital raised was funneled into purchasing more Bitcoin, creating a feedback loop that increased both share prices and Bitcoin assets.
According to previous reports by Coincetral, companies amassed over $86 billion in 2025 for crypto purchases—exceeding the total raised through U.S. IPOs in the same year.
However, with the slowing of Bitcoin’s rally and decreased market volatility, this strategy has begun to unravel. Investors are increasingly hesitant to own shares in companies that simply track Bitcoin’s performance but come with additional business risks. The inflated premiums that once contributed to profits have now vanished, forcing companies to focus on their core financial health.
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### Analysts Urge DATCOs to Shift Toward Real Earnings
Brian Brookshire, head of Bitcoin strategy at H100 Group AB, remarked that the mNAV ratio is volatile and not a stable metric over time.
> “Most BTCTCs trading near 1x mNAV have only arrived there within the past couple weeks,” he said. “By definition, not a norm—even for MSTR, there is no such thing as a normal mNAV.”
The 10X Research report emphasizes that this moment marks a turning point for Bitcoin Treasury companies. Inflated valuations driven by share premiums will no longer be a reliable growth engine. Instead, these firms must demonstrate genuine earnings growth and disciplined business management.
> “With volatility falling and the easy gains gone, these firms face a hard pivot from marketing-driven momentum to real market discipline,” the report concluded.
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### Moving Forward: From Hype to Business Fundamentals
As the Bitcoin frenzy slows, investor focus is shifting from hype to tangible results. Many Bitcoin Treasury companies now face heightened scrutiny, and the market demands clear business strategies over high-risk gambles.
For retail investors, the lesson is clear: chasing exposure through public Bitcoin Treasury stocks can carry substantial risks, especially when premiums deflate and market sentiment shifts. Going forward, success for these firms will depend on their ability to generate real earnings and operate with discipline amid a more cautious market environment.
https://coincentral.com/bitcoin-treasury-firms-cost-retail-buyers-over-17-billion-in-2025/