A consistent pattern emerges during each cryptocurrency surge: concepts initially designed for financial independence are ultimately packaged, financialized, and resold to average investors, often at inflated prices. A recent analysis by 10XResearch indicates that retail investors have collectively suffered losses totaling $17 billion while attempting to gain Bitcoin exposure through publicly traded “digital asset treasury” firms, including
Metaplanet
and Strategy.
10X Research Report Highlights Risks of Indirect Bitcoin Investments
The rationale seemed sound: instead of managing a personal digital wallet or dealing with the complexities of ETFs, investors could simply purchase shares in companies holding significant Bitcoin reserves.
Strategy
essentially pioneered this investment approach. This sparked a trend among various corporations across the globe who sought to imitate this approach.
By the middle of 2025, many smaller and mid-sized companies, identifying themselves as “Bitcoin treasuries” were established. Some had genuine intentions, while others seized opportunities to promote themselves as ways to capitalize on Bitcoin’s potential profits.
However, a major weakness was present: the discrepancies of valuation. 10X Research pointed out that, at the peak of the crypto market’s increase, the financial premiums connected with these stocks became extremely high. In some situations, corporations were being valued 40-50% higher than the net value of their Bitcoin holdings per share. This was influenced by the enthusiastic retail investing momentum, not by actual asset backing. According to
Bloomberg
, the focus changed to the psychology of the investment crowd rather than focusing on Bitcoin exposure.
Consequences of Premium Valuations
When Bitcoin had a 13% decline in value in October, treasury stock values decreased. The stock prices were reduced far beyond the Bitcoin decline percentages. Strategy’s value dropped by nearly 35% from a recent high point, and Metaplanet dropped by more than 50%, negating a large part of its financial profits from the summer.
The late-stage investors in retail experienced harsh, disappointing consequences. 10X Research estimates that $17 billion in retail portfolios consisting of digital asset treasury equities has been lost since August. A large number of individual investors in the U.S., Japan, and Europe have faced this situation.
The Underlying Psychology of Second-Order Speculation
There is a distinct irony: Bitcoin was developed to be a sovereign asset managed independently from financial institutions. It became more structured, leading to average investors purchasing public equities and indirectly investing in Bitcoin.
The equities were marketed as showing strong “corporate beliefs,” were managed by charismatic leaders, and were marketed in an open way. In reality, they created increased leverage on Bitcoin through corporate assets which made them risky investments.
The proxy trades were immediately stopped as the Washington and Beijing macro headwinds triggered the most recent market downturn. The trades impacted individuals who believed that they were using a more sophisticated approach to Bitcoin investment.
An Important Reminder
There’s limited comfort to be found in the data. The lesson is clear for anyone who watches Bitcoin’s ongoing cycle that involves innovations and periods of increased excitement. The closer cryptocurrency assets move into established markets, the more susceptible they become to market volatility. Even though using a company to monetize a belief might seem convenient, it can be costly.
10X Research states that equity assets should not be used as a replacement for cryptocurrency. This chapter of the Bitcoin story has made retail investors aware that decentralization is very important.
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