tl;dr
A shocking $17 billion in losses for retail investors as Bitcoin treasury firms like Metaplanet and MicroStrategy crumble under market volatility, revealing the risks of speculative crypto investments.
**Retail Investors Lose $17 Billion in Bitcoin Treasury Firms as Market Shifts**
Retail investors have suffered a staggering $17 billion in losses trying to gain exposure to Bitcoin through public companies that hold the cryptocurrency in their treasuries, according to a report by 10X Research, cited by Bloomberg. The study highlights the risks and pitfalls of investing in so-called “Bitcoin treasury companies,” which have faced a dramatic reckoning as market conditions shifted.
### The Rise and Fall of Bitcoin Treasury Firms
Companies like Metaplanet and MicroStrategy, led by CEO Michael Saylor, pioneered the strategy of purchasing Bitcoin by issuing shares at inflated premiums to the net asset value (NAV) of their crypto holdings. This approach allowed them to raise capital far above the real value of their Bitcoin assets, enabling them to buy more cryptocurrency. However, the model proved volatile.
“Retail investors effectively lost about $17 billion, while new shareholders overpaid for Bitcoin exposure by about $20 billion,” the report stated. When Bitcoin’s price plummeted, the share prices of these companies collapsed, leaving investors with steep losses. 10X Research warned that the era of “financial magic” for Bitcoin treasury firms is ending.
### Metaplanet and MicroStrategy: Case Studies in Caution
Metaplanet became a prime example of the risks involved. Its market capitalization surged from $1 billion to $8 billion by selling shares at large premiums and using the proceeds to buy Bitcoin. However, after the market crash, its market cap fell to $3.1 billion, while its Bitcoin holdings were worth $3.3 billion. This pushed its mNAV (market value to asset value ratio) down to 0.99—a stark reminder of the disconnect between share prices and underlying assets.
The report noted the irony: “Shareholders lost $4.9 billion in market value, while the company managed to accumulate $2.3 billion in Bitcoin— an achievement worth celebrating.” 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.
### A Call for a New Model
10X Research urges Bitcoin treasury companies to rethink their strategies. The report advises firms to move away from purchasing Bitcoin at inflated NAVs and instead operate as “asset arbitrage managers.” While this shift may limit growth potential, it could improve management efficiency and flexibility, allowing companies to generate 15–20% annual returns.
“The era of easy profits may be over,” the analysts concluded, emphasizing the need for sustainable business models in a volatile market.
### A Market Wake-Up Call
The report aligns with a turbulent period in crypto markets. On October 10–11, 2025, the industry witnessed the largest wave of futures position liquidations in history, exceeding $19 billion. For investors, the lesson is clear: Bitcoin exposure through public firms carries hidden risks, and the speculative fervor of the past may not be repeatable.
As the market matures, the focus is shifting from hype to pragmatism. For retail investors, the $17 billion loss serves as a cautionary tale about the perils of chasing digital assets through unproven financial instruments. The future of Bitcoin treasury companies will depend on their ability to adapt, innovate, and align with the realities of a rapidly evolving market.