2025 has been a huge year for digital asset treasury (DAT) companies, especially Bitcoin and Ethereum treasury vehicles. These public companies accumulating digital assets on their balance sheets provide indirect cryptocurrency exposure to retail investors who purchase their shares.
However, according to a recent report, retail investors lost approximately $17 billion by investing in Bitcoin government bonds. According to the company, the hype surrounding BTC government bonds appears to be coming to an end with retail investors having to deal with losses.
Has the Bitcoin Treasury Bubble Burst?
In a market report last week, 10x Research said the “era of financial magic” for Bitcoin treasury companies is coming to an end. According to a Singapore-based research firm, these government bond companies created billions of dollars in “paper wealth” by issuing overvalued shares to investors.
As the price of Bitcoin continues to rise, it made sense for financial firms to offer the stock at a premium, according to the analytics firm. 10x Research notes that the once-popular premium to net asset value (NAV) was an illusion that resulted in losses for investors “while executives walked away with their gold.”
10x Research noted that investors who purchased overvalued stocks during the Bitcoin financial boom collectively lost about $17 billion. Declining volatility and returns have forced Treasury companies to make a hard transition from marketing-driven momentum to actual market discipline, according to the research firm.
Source: 10x Research
Added 10x research:
The next act is not about magic, but about who can still create alpha when the audience doesn’t believe it.
Unsurprisingly, the performance of Bitcoin-related stocks over the past few months has been quite disappointing. For example, Strategy’s (formerly MicroStrategy) MSTR stock is down more than 20% since August.
The company, led by Michael Saylor, recently announced that it had purchased Bitcoin between October 6 and October 12. By purchasing 220 BTC at an average price of $123,561, Strategy’s holdings reached 640,250 BTC (worth approximately $47.38 billion).
bitcoin price At a glance
As of this writing, the BTC price is around $106,799, with no significant movement over the past day. Following the market-wide crash on October 10, the top cryptocurrency has struggled to maintain positive momentum. Bitcoin’s value has fallen more than 4% over the past seven days, according to data from CoinGecko.
The price of BTC on the daily timeframe | Source: BTCUSDT chart on TradingView
Featured image from iStock, chart from TradingView
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