Retail Investors Lose $17 Billion To Bitcoin Treasury Hype: Report

Retail investors have seen collective losses of approximately $17 billion after buying into overvalued shares of Bitcoin treasury firms, according to a new report by 10x Research. The optimism surrounding digital asset treasury (DAT) companies appears to be fading as market conditions shift.

Background: Rise of Digital Asset Treasuries

The year 2025 has marked significant growth for publicly traded companies offering indirect crypto exposure through digital asset treasuries. Firms that accumulate Bitcoin and Ethereum on their balance sheets—such as MicroStrategy (now rebranded as Strategy)—have attracted retail investors seeking exposure to crypto without owning the assets directly.

This business model leveraged booming interest in crypto assets, with these companies often issuing shares that traded at premiums to their net asset value (NAV). Investors were drawn in by bullish sentiment and the rising price of Bitcoin.

Has the Bitcoin Treasury Bubble Burst?

Singapore-based analytics firm 10x Research has issued a warning that the “age of financial magic” is ending for these firms. According to their latest market report, Bitcoin treasury companies built billions in “paper wealth” by selling shares at inflated valuations, creating the illusion of sustainable growth.

“The next act won’t be about magic—it will be about who can still generate alpha when the audience stops believing,” the report stated.

10x Research estimates retail investors have lost approximately $17 billion from buying these overvalued stocks. As volatility and profits decline, DAT firms are being forced to pivot from hype-based narratives to more disciplined financial performance.

Market Impact and Stock Performance

Among the most notable examples is Strategy’s (formerly MicroStrategy) MSTR stock, which has dropped over 20% since August despite continued Bitcoin accumulation. Between October 6 and October 12, the firm added 220 BTC to its balance sheet at an average price of $123,561, bringing its total holdings to 640,250 BTC—valued at approximately $47.38 billion.

Strategy’s continued buying has failed to counteract investor skepticism as valuation concerns mount and shareholder returns diminish.

Bitcoin Price Update

As of press time, Bitcoin is trading around $106,799, showing minimal movement in the past 24 hours. Following a broader market sell-off on October 10, BTC has struggled to regain traction and is down over 4% over the last seven days, according to data from CoinGecko.