Retail Investors Lose $17 Billion on Bitcoin Treasury Stocks
Retail investors have lost about $17 billion investing in companies holding Bitcoin in their treasuries. Firms like Japan’s Metaplanet and Michael Saylor’s Strategy became popular for offering easy Bitcoin exposure through stocks. However, these companies sold shares at prices far above their Bitcoin holdings’ actual value.
A report by Singapore-based 10X Research titled “After the Magic: How Bitcoin Treasury Firms Must Evolve Beyond NAV Illusions” explains that inflated share prices have crashed. Many investors now hold shares worth much less than what they paid.
At the peak, digital asset treasury (DAT) companies sold stock at premiums two to seven times their Bitcoin value. These premiums have disappeared, ending what analysts call the “age of financial magic” for Bitcoin treasury firms.
Key Examples: Metaplanet and Strategy
- Metaplanet invested $1 billion in Bitcoin, supporting a market value of $8 billion at its peak.
- Its market cap has dropped to $3.1 billion, backed by $3.3 billion in Bitcoin.
- Strategy’s shares fell from premiums triple or quadruple Bitcoin’s value to 1.4 times today.
Opportunities for Disciplined Investors
The collapse in Bitcoin treasury stocks reveals a tough market for retail investors. However, 10X Research notes that companies converting inflated capital into real Bitcoin may offer opportunities. Firms with experienced management could still deliver strong returns.
Strategy (MSTR) has fallen 39% from its November 2024 peak, closing at $289.87. Metaplanet (MTPLF) dropped 79% from its June peak, now trading at 402 yen ($2.67), according to Yahoo Finance.
Analysts say this reset may create a new phase for well-funded Bitcoin asset managers. Investors should watch as the Bitcoin treasury business environment changes.
