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2025 was an exciting 12 months for digital asset treasury (DAT) corporations, particularly Bitcoin and Ethereum treasury vehicles. These publicly traded corporations that accumulate digital assets on their balance sheets offer indirect crypto exposure to retail investors who buy their shares.
However, a recent report found that retail investors lost around $17 billion by investing in Bitcoin treasuries. According to the corporate, the BTC treasury hype appears to be coming to an end and retail investors are having to deal with the losses.
Has the Bitcoin financial bubble burst?
In its market report last week, 10x Research said the “age of economic magic” is coming to an end for Bitcoin financial corporations. According to the Singapore-based research firm, these financial firms have amassed billions in “paper assets” by issuing overvalued stocks to investors.
According to the analytics firm, it made sense for treasury firms to supply their shares at a premium as the value of Bitcoin continued to rise. 10x Research found that the once-celebrated net asset value (NAV) premiums were an illusion that left investors with losses while “execs got away with the gold.”
10x Research mentioned that investors who bought overvalued stocks in the course of the Bitcoin Treasury boom lost a complete of about $17 billion. According to the market research firm, falling volatility and profits are forcing treasury firms to make a tricky shift from marketing-driven dynamics to true market discipline.
Source: 10x Research
Added 10x Research:
The next act is not going to be about magic, but about who can still generate alpha when the audience not believes.
Unsurprisingly, the performance of Bitcoin-linked stocks has been quite disappointing over the past few months. For example, Strategy (formerly often called MicroStrategy) MSTR stock has fallen over 20% since August.
The Michael Saylor-led company announced its last purchase of Bitcoin between October sixth and October twelfth. The purchase of 220 BTC – at a mean price of $123,561 – increased Strategy’s holdings to 640,250 BTC (price roughly $47.38 billion).
Bitcoin price at a look
As of this writing, the value of BTC is around $106,799, reflecting no notable movements previously day. Following the market-wide crash on October 10, the leading cryptocurrency has struggled to take care of positive momentum. According to data from CoinGecko, the worth of Bitcoin has fallen by greater than 4% within the last seven days.
The price of BTC within the day by day timeframe | Source: BTCUSDT chart on TradingView
Featured image from iStock, chart from TradingView
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