Investors Crushed as Bitcoin Treasury Firms Collapse Under Their Own Hype

The recent plunge in Bitcoin’s price has erased billions from investors who sought exposure through Digital Asset Treasury Companies (DATCOs) - firms that buy and hold Bitcoin as part of their balance sheet strategies.

According to 10x Research, this sector’s decline has wiped out roughly $17 billion in retail wealth, with shareholders in companies like MicroStrategy and Metaplanet taking the hardest hit.

DATCOs became a popular entry point for investors hoping to ride Bitcoin’s rally indirectly. These companies often sold their shares at hefty premiums over the value of their Bitcoin reserves, using the proceeds to accumulate more of the cryptocurrency. The approach worked flawlessly in bull markets, when optimism pushed valuations far beyond the underlying assets. But as enthusiasm cooled and Bitcoin’s price momentum faded, those premiums collapsed, exposing how inflated the sector had become.

10x Research estimates that investors collectively overpaid by around $20 billion for Bitcoin exposure through these premium-priced equities. The selloff has mirrored the broader digital asset correction, with MicroStrategy’s stock down more than 20% since August and Tokyo-based Metaplanet losing over 60% in the same period.

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The pullback also crushed the once-vaunted market-to-net-asset-value (mNAV) ratios of DATCOs – a metric that reflects investor confidence. MicroStrategy now trades at roughly 1.4x its Bitcoin holdings, while Metaplanet has slipped below parity for the first time since embracing its Bitcoin treasury model in 2024. Across the industry, nearly one-fifth of all listed Bitcoin treasury firms are trading below their net asset value.
Despite Bitcoin reaching an all-time high of $126,000 earlier this month, the correction intensified after U.S. President Donald Trump’s tariff threats against China triggered a wave of selling.

Still, some analysts, such as Brian Brookshire of H100 Group AB, believe these declines are part of the natural cycle of Bitcoin-linked equities. He described mNAV ratios as “volatile and temporary,” arguing that such corrections do not undermine the sector’s long-term fundamentals.

Yet 10x Research struck a more sober tone, calling the downturn “the end of financial alchemy” – a point where hype and premium-fueled growth give way to earnings reality. With volatility cooling and speculative momentum fading, Bitcoin treasury firms now face a crucial test: proving they can thrive without the illusion of endless upside.