According to a report from 10X Research, retail investors have collectively lost around $17 billion after pouring money into publicly traded Bitcoin treasury companies that were significantly overvalued.
The biggest casualties include Metaplanet and Strategy, companies that built their business model around issuing shares at inflated premiums to acquire Bitcoin. Analysts note that such firms need to shift from “NAV illusions” to real asset management models in order to survive in the evolving crypto market.
How Investors Lost Billions
Retail investors attempted to gain Bitcoin exposure indirectly through publicly listed firms holding the cryptocurrency in their treasuries. However, they ended up paying far above the actual value of the underlying Bitcoin, as these companies issued shares at high premiums to fund Bitcoin purchases.
“Retail investors essentially lost about $17 billion, while new shareholders overpaid roughly $20 billion for Bitcoin exposure,” the 10X Research report stated.
When market conditions changed, the share prices of these companies plummeted, leaving investors “holding the bag.”
| Company | Peak Market Cap | BTC Holdings | Market Cap After Crash | Notes on NAV Premium |
|---|---|---|---|---|
| Metaplanet | $8.0B | $3.3B | $3.1B | Sold shares at high premiums, then bought Bitcoin |
| Strategy | — | — | 1.4× NAV | Previously traded at 3–4× NAV for BTC holdings |
Analysts highlight that while Metaplanet lost investors roughly $4.9 billion in market value, the company successfully accumulated $2.3 billion in Bitcoin, a notable achievement under the circumstances.
Lessons for Bitcoin Treasury Companies
The report stresses that companies with digital treasuries must adapt their business model to survive. Simply issuing overpriced shares to buy Bitcoin is no longer sustainable.
“Bitcoin treasury companies need to move away from inflated NAV practices and operate like asset managers focused on arbitrage and efficiency,” the report notes.
Although this could reduce explosive growth potential, flexibility and operational efficiency will determine the profitability of these structures in the long run. 10X Research concludes that well-managed digital treasury firms can still generate 15–20% annual returns.
Market Context
This report comes after a record wave of cryptocurrency futures liquidations, exceeding $19 billion, observed on October 10–11, 2025. The collapse of overvalued treasury companies adds another layer of caution for retail investors seeking exposure to Bitcoin via public equities.
