Bitcoin’s Big Fall: Retail Investors Lose $17B in 2025!

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A recent 10X Research report has estimated that retail investors lost about $17 billion due to their exposure to Bitcoin treasury companies. Which, if you think about it, is like losing your wallet in a magic trick-except the magician’s name is “Hype” and the trick is called “Investing” 😎

The losses reflect a broader decline in investor enthusiasm for Digital Asset Treasury Companies (DATCOs). Firms such as MicroStrategy and Metaplanet have seen their stocks tumble in tandem with Bitcoin’s recent price slump. Which is like watching a balloon deflate after a party-only the party was called “2025” and the balloon was a stock ticker. 🎉💥

Bitcoin Treasury Firms Wiped Out $17 Billion in Retail Wealth

According to the report, many investors turned to these DATCOs to gain indirect exposure to Bitcoin. These firms typically issue shares at a premium to their underlying Bitcoin holdings, using the raised capital to buy more BTC. It’s like buying a ticket to a concert, only to find out the band is a group of people playing a kazoo while pretending to be a rock star. 🎸🙃

10x Research noted that the strategy worked well when Bitcoin’s price rose, as stock valuations often outpaced the asset’s spot gains. However, as market sentiment cooled and Bitcoin’s momentum faded, those premiums collapsed. Like a soufflé that deflates mid-bite-only the soufflé was your savings and the bite was a 20% drop. 🥞😢

As a result, investors who bought during the frenzy of inflated valuations have collectively lost about $17 billion. The firm also estimated that new shareholders overpaid for Bitcoin exposure by roughly $20 billion through these equity premiums. Which is like paying for a goldfish and getting a goldfish that’s already dead. 🐠💀

These numbers are unsurprising considering BeInCrypto previously reported that global companies have raised over $86 billion in 2025 to buy cryptocurrencies. Notably, this figure surpasses the total US initial public offerings this year. Which is like saying you spent more on snacks than the entire supermarket. 🛒💸

Yet, despite this massive inflow, the performance of Bitcoin-linked equities has recently lagged behind the broader market. For context, Strategy’s (formerly MicroStrategy) MSTR stock has fallen more than 20% since August. Tokyo-based Metaplanet, according to Strategy Tracker data, also lost over 60% of its value during the same period. It’s like watching your savings account go on a diet-only the diet is called “market corrections” and the weight loss is permanent. 💸📉

Bitcoin DATCOs mNAVs Decline

At the same time, their market-to-net-asset-value (mNAV) ratios, once a measure of investor confidence, have also deteriorated. MicroStrategy now trades around 1.4x its Bitcoin holdings, while Metaplanet has slipped below 1.0x for the first time since adopting its Bitcoin treasury model in 2024. It’s like your confidence in a friend’s financial advice suddenly dropping below zero. 🤷‍♂️💸

“Those once-celebrated NAV premiums have collapsed, leaving investors holding the empty cup while executives walked away with the gold,” 10x Research stated. Which is like a magician saying, “I’m sorry, the rabbit was a decoy and the gold is in the hat-no, wait, the hat’s gone too.” 🪄💸

Across the market, nearly one-fifth of all listed Bitcoin treasury firms reportedly trade below their net asset value. It’s like a discount store that’s charging more than the regular store. 🛍️💸

The contrast is striking given that Bitcoin recently hit a record high above $126,000 this month before pulling back after President Donald Trump’s tariff threats against China. Which is like a rollercoaster that goes up, then down because the conductor got a flat tire. 🎢📉

Still, Brian Brookshire, head of Bitcoin strategy at H100 Group AB, argued that mNAV ratios are cyclical and do not reflect long-term value. H100 Group AB is the largest Bitcoin-holding firm in the Nordic region. It’s like saying, “This is just a phase, the sun will come out tomorrow-probably.” ☀️🙃

“Most BTCTCs trading near 1x mNAV have only arrived there within the past couple weeks. By definition, not a norm…even for MSTR, there is no such thing as a normal mNAV. It’s a volatile, cyclical phenomenon,” he said. Which is like saying, “This is normal, just like a teacup shattering in a hurricane.” 🍵🌀

Nonetheless, analysts at 10X Research said the current episode marks “the end of financial alchemy” for Bitcoin treasuries, where inflated share issuance once created the illusion of limitless upside. It’s like the end of a magic show-only the rabbit is gone and the magician is in a lawsuit. 🪄💸

Considering this, the firm stated that these DATCOs will now be judged by earnings discipline rather than market euphoria. “With volatility falling and the easy gains gone, these firms face a hard pivot from marketing-driven momentum to real market discipline. The next act won’t be about magic-it will be about who can still generate alpha when the audience stops believing,” 10X Research concluded. Which is like saying, “Time to stop the illusion, folks. The real show is about actual work, not smoke and mirrors.” 🎭✨

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2025-10-18 22:53