Retail investors have suffered significant financial losses—approximately $17 billion—due to investments in public companies that accumulate Bitcoin in their treasuries. According to analysts at 10X Research, the cause was inflated premiums to net asset value (NAV) at which these companies sold their shares on the market.
This is reported by Finway
Reasons for Losses and Impact on the Stock Market
The greatest losses were incurred by investors who directed funds into Bitcoin treasury companies such as Metaplanet and Strategy. These companies used funds from share placements with high NAV premiums to purchase Bitcoin, leading to a substantial overvaluation of their market capitalization. According to the 10X Research report, when the market situation changed, the value of shares plummeted, leaving investors with significant losses.
“Retail investors effectively lost about $17 billion, while new shareholders overpaid for Bitcoin exposure by approximately $20 billion,” the report states.
In the case of Metaplanet, the company’s market capitalization rose from $1 billion to $8 billion due to issuing shares at high premiums and subsequent Bitcoin purchases. After the market correction, the capitalization shrank to $3.1 billion, while the amount of Bitcoin on the company’s balance sheet equaled $3.3 billion. The mNAV ratio, which reflects the relationship between the company’s market valuation and the value of its crypto assets, for Metaplanet dropped to 0.99.
In the case of Strategy, whose shares previously traded at three to four times the value of Bitcoin reserves, they are now quoted at only 1.4 times the net value of the crypto assets on the balance sheet.
Analysts’ Advice and the Future of Bitcoin Companies
Analysts at 10X Research believe that Bitcoin treasury companies should abandon the strategy of increasing reserves based on “inflated” NAV. Instead, they should shift to an asset arbitrage management model, which will enhance resilience in a volatile market.
Researchers also believe that while such a strategic shift may limit growth potential, effective management and flexibility will become key factors for profitability in the future. According to 10X Research, smart digital treasury companies can achieve profitability of 15–20% annually even in new market conditions.
It is worth noting that on the night of October 10 to 11, 2025, the crypto market experienced a record wave of futures position liquidations exceeding $19 billion, which also heightened volatility and impacted retail investors’ positions.