2025 has been a big year for digital asset treasury (DAT) companies, especially Bitcoin and Ethereum treasury vehicles. These publicly traded companies, which accumulate digital assets on their balance sheets, offer retail investors who buy their shares indirect crypto exposure.
However, a recent report found that retail investors have lost around $17 billion by investing in Bitcoin treasury stocks. According to the company, the hype surrounding BTC treasuries appears to be coming to an end, with retail investors forced to deal with losses.
Has the Bitcoin Treasury Bubble Burst?
In its market report last week, 10x Research saying that the “age of financial magic” is coming to an end for Bitcoin treasury companies. According to the Singapore-based research firm, these treasury companies conjured billions in “paper wealth” by issuing overvalued shares to investors.
According to the analytics firm, it made sense for treasury firms to offer their shares at a premium as the price of Bitcoin continued to rise. 10x Research said the once-celebrated net asset value (NAV) premiums were an illusion that had left investors with losses while “executives reaped the gold.”
10x Research mentioned that investors who bought overvalued stocks during the Bitcoin treasury boom have collectively lost around $17 billion. According to the research firm, declining volatility and earnings are forcing Treasury companies to make a hard pivot from marketing-driven momentum toward real market discipline.
Source: 10x Research
10x Research added:
The next act won’t be about magic, but about who can still generate alpha when the public stops believing.
Unsurprisingly, the performance of Bitcoin-linked stocks has been quite disappointing in recent months. For example, shares of Strategy’s MSTR (formerly known as MicroStrategy) have fallen more than 20% since August.
The firm led by Michael Saylor announced its latest Bitcoin purchase between October 6 and 12. The purchase of 220 BTC, at an average price of $123,561, raised Strategy’s holdings to 640,250 BTC (worth approximately $47.38 billion).
Bitcoin Price At a glance
At the time of writing, the BTC price stands at around $106,799, which does not reflect any significant movement in the last day. Following the market crash on October 10, the leading cryptocurrency has struggled to maintain positive momentum. According to data from CoinGecko, the value of Bitcoin has fallen by more than 4% in the last seven days.
The price of BTC on the daily timeframe | Source: BTCUSDT chart on TradingView
Featured image from iStock, chart from TradingView
Editorial process for bitcoinist focuses on providing thoroughly researched, accurate and unbiased content. We maintain strict sourcing standards and every page undergoes diligent review by our team of technology experts and experienced editors. This process ensures the integrity, relevance and value of our content to our readers.
