For months, investors believed that buying shares in Bitcoin treasury companies like MicroStrategy and Metaplanet was the smarter, safer way to gain exposure to the world’s largest cryptocurrency. It felt like a shortcut to Bitcoin profits — until the Bitcoin treasury bubble burst.
According to a new report by 10x Research, retail investors have lost over $17 billion chasing these so-called “Bitcoin treasury” stocks. Surprisingly, the crash didn’t come from a fall in Bitcoin’s price, but from something far more painful.
### Sky-High Premiums Come Crashing Down
During 2024 and early 2025, excitement around Bitcoin’s institutional adoption reached its peak. Investors were paying 3 to 4 times their net asset value (NAV) just to own shares in Bitcoin-holding companies. These stocks were treated like leveraged bets on crypto’s future.
However, as global markets cooled and trade tensions between the US and China added uncertainty, these inflated valuations couldn’t hold. Multiples collapsed to around 1.0–1.4× NAV, wiping out billions in shareholder value — even while Bitcoin’s price remained near record highs.
Overall, 10x Research estimates that around $20 billion was overpaid, highlighting the steep cost of chasing hype over real assets.
### Metaplanet & MicroStrategy Struggle Too
Metaplanet, once dubbed “Asia’s MicroStrategy,” stopped buying Bitcoin in early October after its share price plunged nearly 47% in just three weeks. This decline pushed its enterprise value below the worth of its BTC holdings. The company alone lost $4.9 billion from its peak.
MicroStrategy wasn’t spared either. Its premium sharply fell from 4× to 1.4× NAV, demonstrating how even established players felt the squeeze.
### How Investors Lost Big
10x Research calls this the end of the “financial magic.” These treasury firms, once celebrated for their bold Bitcoin strategies, now face mounting pressure to prove real value through lending, custody, or arbitrage services.
The crash boiled down to simple math: these companies bought Bitcoin with stock or debt at inflated prices. When valuations cooled, investors who bought at the peak faced losses of about 67% compared to holding Bitcoin directly.
As a result, many investors are shifting to spot Bitcoin ETFs or direct Bitcoin holdings, where transparency is clearer and premiums don’t erode returns.
### What’s Next?
10x Research further warns that the premium collapse could erase an additional $25-30 billion in value by year-end, striking another heavy blow to speculative Bitcoin capital.
To survive, firms must now achieve 15-20% returns through real-yield strategies — or risk collapse.
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Investors looking for cryptocurrency exposure should consider the lessons from this episode carefully: chasing inflated premiums on Bitcoin treasury stocks carries significant risks, especially when underlying asset prices remain stable. Direct ownership or transparent ETFs may offer safer alternatives moving forward.
https://coinpedia.org/news/bitcoin-treasury-bubble-about-to-burst-say-10x-research/