Retail investors have lost around $17 billion trying to gain exposure to Bitcoin through public companies that hold the cryptocurrency in their treasuries, according to Bloomberg, citing a report from 10X Research.
These so-called Bitcoin treasury companies, such as Metaplanet and Michael Saylor’s MicroStrategy, buy Bitcoin by issuing their own shares — often at inflated premiums to the net asset value (NAV) of their crypto holdings.
According to 10X Research, these inflated premiums allowed companies to raise capital far above the real value of their Bitcoin assets and purchase more of the cryptocurrency.
“Retail investors effectively lost about $17 billion, while new shareholders overpaid for Bitcoin exposure by about $20 billion,” the report said.
However, when market conditions shifted, the share prices of these companies collapsed, leaving investors with steep losses.
“The era of financial magic for Bitcoin treasury companies is coming to an end,” 10X Research analysts wrote.
Metaplanet and MicroStrategy Face Reality
The study highlights Metaplanet as a prime example. The company’s market capitalization soared from $1 billion to $8 billion, fueled by a strategy of selling shares at large premiums and using the proceeds to buy Bitcoin.
After the market crash, Metaplanet’s market cap fell to $3.1 billion, while its Bitcoin holdings were worth $3.3 billion, pushing its mNAV (market value to asset value ratio) down to 0.99.
“Shareholders lost $4.9 billion in market value, while the company managed to accumulate $2.3 billion in Bitcoin — an achievement worth celebrating,” the report noted ironically.
Meanwhile, MicroStrategy’s shares, which once traded at three to four times the value of its Bitcoin holdings, now hover around 1.4 times their underlying asset value.
10X Research: A Call for a New Model
10X Research warns that companies holding digital treasuries must rethink their business models to survive
“Bitcoin treasury firms should move away from buying Bitcoin at inflated NAVs and begin operating as asset arbitrage managers,” the report advised.
While this shift could limit growth potential, management efficiency and flexibility will determine future profitability.
“Smart digital treasury companies can still generate 15–20% per annum,” researchers concluded.
A Market Wake-Up Call
The report coincides with a turbulent moment in crypto markets. On the night of October 10–11, 2025, the industry witnessed the largest wave of futures position liquidations in history, exceeding $19 billion.
For investors, the message is clear: Bitcoin exposure through public firms carries hidden risks — and the era of easy profits may be over.