Bitcoin Treasury Companies Destroy $17 Billion in Retail Investments
Date: 2025-10-20 Author: Oliver Abernathy Categories: BUSINESS
A new report from 10X Research found that retail investors lost approximately $17 billion on Bitcoin treasury companies, such as MicroStrategy and Metaplanet. These losses were the result of declining interest in DATCO companies, whose shares fell alongside the price of BTC.
Many investors purchased DATCO shares for indirect exposure to Bitcoin, despite the companies issuing shares at a premium to net asset value (NAV). The funds raised were used to purchase BTC, allowing the stock to outperform Bitcoin itself during the bull market. However, as the cryptocurrency's price began to fall, the premium disappeared, leaving those who bought shares at the peak with significant losses. Analysts estimate that investors overpaid around $20 billion in an attempt to gain "cheap access" to Bitcoin.
Even despite BTC's recent all-time high above $126,000, shares of major DATCOs continue to fall. MicroStrategy shares have fallen more than 20% since August, while Metaplanet has lost around 60% of its value, according to Strategy Tracker. The mNAV (mean annual value) ratio—the ratio of a company's market capitalization to the value of its Bitcoin holdings—has also fallen sharply. Metaplanet shares are trading below 1.0x mNAV for the first time since 2024, while MicroStrategy remains at around 1.4x. Analysts at 10X Research noted that previous premiums to mNAV have collapsed, leaving investors with losses and executives with generous compensation.
The report shows that nearly 20% of all companies with Bitcoin treasuries are trading below their net asset value. Experts call this a natural market revaluation. Brian Brookshire of H100 Group AB emphasized that mNAV fluctuations are cyclical and do not reflect the true value of the business.
However, 10X Research analysts see a deeper signal in the falling premiums: the era of rapid growth through stock issuance and Bitcoin premiums is ending. In the future, companies with Bitcoin treasuries will be valued based on financial discipline and actual profitability, not on the hype surrounding BTC. "Easy profits are fading, and the moment of truth is approaching," the report's authors emphasize, noting that the next stage will reveal who is capable of generating profits when faith in the "crypto magic" fades.
