2025 was a good year for digital asset treasury (DAT) companies, especially Bitcoin and Ethereum treasury vehicles. These publicly traded companies, which accumulate digital assets on their balance sheets, offer retail investors who buy their shares indirect exposure to cryptocurrencies.
However, a recent report shows that retail investors have lost approximately $17 billion investing in Bitcoin treasury stocks. According to the company, the hype surrounding BTC government bonds appears to be coming to an end, with retail investors forced to deal with the losses.
Has the Bitcoin Treasury Bubble Burst?
In last week’s market report, 10x Research wrote said that the “era of financial magic” is coming to an end for Bitcoin treasury companies. According to the Singapore-based research firm, these government bonds have raised billions in “paper wealth” by issuing overvalued shares to investors.
According to the analysis firm, it made sense for financial institutions to offer their shares at a premium as the price of Bitcoin continued to rise. 10x Research noted that the once-celebrated premiums to net asset value (NAV) were an illusion that left investors with losses while “executives made off with the gold.”
10x Research reported that investors who bought the overvalued stocks during the Bitcoin treasury boom collectively lost about $17 billion. According to the research firm, declining volatility and profits are forcing government bond companies to make a hard pivot from marketing-driven momentum to real market discipline.
Source: 10x Research
10x Research added:
The next act won’t be about magic, but about who can still generate alpha when the audience stops believing.
Unsurprisingly, the performance of Bitcoin-linked stocks has been quite disappointing in recent months. For example, MSTR shares of Strategy (formerly known as MicroStrategy) are down more than 20% since August.
The Michael Saylor-led company announced its last purchase of Bitcoin between October 6 and October 12. The purchase of 220 BTC – at an average price of $123,561 – brought Strategy’s holdings to 640,250 BTC (worth approximately $47.38 billion).
Bitcoin price At a glance
At the time of writing, the price of BTC is around $106,799, which does not reflect any significant movement in the past day. After the market-wide crash on October 10, the leading cryptocurrency has struggled to maintain any positive momentum. According to data from CoinGecko, Bitcoin’s value has fallen by more than 4% in the past seven days.
The price of BTC on the daily timeframe | Source: BTCUSDT chart on TradingView
Featured image from iStock, chart from TradingView
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