A recent report from 10X Research has revealed that retail investors have collectively lost approximately $17 billion due to their investments in Digital Asset Treasury Companies (DATCOs) linked to Bitcoin. This significant loss serves as a reflection of a broader decline in investor enthusiasm for these companies.
Notable firms such as MicroStrategy and Metaplanet have experienced sharp declines in their stock prices, closely mirroring Bitcoin’s recent downturn. Investors initially turned to DATCOs as a means to gain indirect exposure to Bitcoin, with many companies issuing shares at premiums compared to their actual Bitcoin holdings. The capital raised from these equity offerings was typically used to acquire more Bitcoin. This strategy had been effective when Bitcoin prices were on the rise, as stock valuations often exceeded the gains in the cryptocurrency itself. However, as market sentiment weakened and Bitcoin’s upward momentum diminished, these premiums began to collapse.
As a consequence, those who invested during the peak valuations have suffered significant financial setbacks, with 10X Research estimating new shareholders overpaid for Bitcoin exposure by roughly $20 billion. The stark reality comes in light of previously reported figures showing that global firms raised over $86 billion in 2025 for cryptocurrency purchases, a total that notably eclipses all U.S. initial public offerings this year.
Despite this influx of capital into Bitcoin-related equities, their performance has notably lagged behind the broader market. Shares of MicroStrategy, for instance, have plummeted more than 20% since August, while Tokyo-based Metaplanet has seen a staggering decline of over 60% during the same timeframe.
Once seen as indicators of market confidence, the market-to-net-asset-value (mNAV) ratios of these companies have also taken a hit. MicroStrategy now trades at around 1.4 times its underlying Bitcoin holdings, whereas Metaplanet’s ratio has dropped below 1.0 for the first time since it adopted its Bitcoin treasury model in 2024. This decline illustrates a stark shift in investor sentiment, as many Bitcoin treasury firms are now trading below their net asset value.
While Bitcoin recently peaked at a record high above $126,000 before retracting due to external pressures such as trade tensions, Brian Brookshire, head of Bitcoin strategy at H100 Group AB, shared insights suggesting that mNAV ratios are cyclical and don’t necessarily reflect long-term value. He noted that many firms trading near 1x mNAV have only reached this level recently and that volatility in these metrics is expected.
In light of these developments, analysts at 10X Research have posited that this may signify the end of what they describe as “financial alchemy” in the realm of Bitcoin treasuries. The era characterized by inflated share issuance and perceived limitless growth seems to be concluding. Going forward, these DATCOs will likely face scrutiny based on their earning capabilities rather than mere market exuberance.
The road ahead will demand a shift from marketing-driven strategies to disciplined financial management, as these firms grapple with the reality of generating viable returns in a market that is losing its speculative allure. The findings from 10X Research underscore a pivotal transition, highlighting that the next phase will require tangible performance rather than the mirage of endless growth that previously captivated investors.
