TLDR
- Retail investors lost $17 billion through Bitcoin Treasury stock exposure.
- Companies raised $86 billion in 2025 to buy Bitcoin, surpassing US IPOs.
- One-fifth of Bitcoin-linked firms now trade below their net asset value.
- Strategy’s stock dropped 20%, while Metaplanet lost over 60% in value.
Retail investors are now facing heavy losses after chasing Bitcoin exposure through public companies. A new report from 10X Research shows that these investors lost around $17 billion as shares in Bitcoin Treasury companies fell sharply. Many bought into the hype at premium prices, but as Bitcoin’s rally faded, those premiums collapsed. The stock drop left many shareholders holding losses instead of gains.
Bitcoin Treasury Stocks Drop With Market Sentiment
Retail investors turned to Bitcoin Treasury Companies (DATCOs) to gain indirect exposure to Bitcoin. These firms, such as MicroStrategy (now Strategy) and Metaplanet, issued shares at premiums and used the capital to buy Bitcoin.
This method helped boost valuations during Bitcoin’s price rise. However, when Bitcoin’s momentum slowed, the stock prices of these firms dropped. The report said this shift wiped out $17 billion in wealth for new investors.
“Those once-celebrated NAV premiums have collapsed, leaving investors holding the empty cup while executives walked away with the gold,” 10X Research noted.
Market enthusiasm around Bitcoin Treasury stocks has faded. According to the report, investors also overpaid by $20 billion due to inflated equity premiums.
Bitcoin-Linked Equities Underperform Despite Crypto Surge
Despite Bitcoin recently reaching a new all-time high above $126,000, shares of companies tied to the cryptocurrency have struggled. Strategy’s (formerly MicroStrategy) MSTR stock dropped over 20% since August. Tokyo-based Metaplanet saw an even steeper fall, losing more than 60% of its value.
Investor confidence, as measured by market-to-net-asset-value (mNAV) ratios, has dropped. Strategy now trades at about 1.4 times its Bitcoin holdings, while Metaplanet fell below a 1.0x ratio. This means some of these stocks now trade for less than the value of their Bitcoin holdings.
Around one-fifth of all listed Bitcoin Treasury firms are now trading below their net asset values, according to the data. This has raised concerns among analysts about whether the model still works in the current market.
Rise and Fall of the Bitcoin Treasury Strategy
During Bitcoin’s bull market, DATCOs raised billions by issuing shares that traded above their underlying Bitcoin value. That capital was used to buy more Bitcoin, creating a feedback loop that pushed both the share prices and Bitcoin holdings higher.
Coincetral earlier reported that companies raised over $86 billion in 2025 for crypto purchases. This figure was higher than the total amount raised by U.S. IPOs this year. However, with Bitcoin’s rally slowing and market volatility dropping, the same strategy has started to fail.
Investors are now questioning the value of owning shares in companies that mirror Bitcoin’s performance but carry added business risk. The inflated premiums that once boosted profits are now gone, and companies must rely on core financial performance.
Analysts Say DATCOs Must Shift Toward Real Earnings
Brian Brookshire, Bitcoin strategy head at H100 Group AB, said that the mNAV ratio is not stable over time. “Most BTCTCs trading near 1x mNAV have only arrived there within the past couple weeks,” he explained. “By definition, not a norm… even for MSTR, there is no such thing as a normal mNAV.”
10X Research said this is a turning point for DATCOs. The report stated that inflated valuations from share premiums will no longer drive performance. Instead, these firms will need to show earnings growth and business discipline.
“With volatility falling and the easy gains gone, these firms face a hard pivot from marketing-driven momentum to real market discipline,” the report said.
Many of these companies now face more scrutiny from investors who are less focused on hype and more focused on results. As the Bitcoin frenzy slows, the market is demanding a shift from high-risk bets to clear business strategy.
