Digital asset treasuries lose billions in paper wealth, but analysts see a reset paving the way for smarter Bitcoin asset managers
The collapse in Net Asset Values (NAVs) across digital asset treasuries (DATs) has wiped billions from investors — yet analysts at 10x Research say the downturn could mark the start of a new, more disciplined era in Bitcoin treasury management.
In a report shared on Friday, 10x Research said “the age of financial magic is ending for Bitcoin treasury companies.”
Shares of major Bitcoin treasuries reflected the broader stress. Metaplanet (MTPLF) slid 6.5% on the Tokyo Stock Exchange to 402 yen ($2.67) — down 79% from its June peak. Strategy (MSTR) gained 2% on Friday to $289.87, but remains 39% below its November 2024 high.
“They conjured billions in paper wealth by issuing shares far above their real Bitcoin value — until the illusion vanished,” the analysts wrote.
During the boom, DATs were able to issue shares at steep premiums to their actual Bitcoin (BTC $106,648) holdings. The inflated valuations effectively transferred wealth from retail investors to company treasuries, allowing firms to acquire real BTC while shareholders were left holding devalued equity.
10x Research highlighted Metaplanet — the fourth-largest Bitcoin treasury firm — as a prime example. The company’s market capitalization once hit $8 billion despite holding just $1 billion worth of Bitcoin. Following the correction, Metaplanet now has a $3.1 billion market cap supported by $3.3 billion in BTC, reflecting a more realistic valuation.
A full cycle of boom and bust
Analysts compared the trend to Michael Saylor’s Strategy (MSTR), which also went through a “boom-and-bust” NAV cycle, slowing its pace of Bitcoin accumulation.
“With NAVs now having fully round-tripped, retail investors have lost billions — and many likely lack the conviction to keep adding,” the report noted.
Yet amid the wreckage, researchers see a rare entry point. Companies now trading at or below NAV offer investors pure Bitcoin exposure plus upside potential from future alpha generation and trading profits.
A new class of Bitcoin asset managers
10x Research believes the market reset will separate “real operators from marketing machines.” The survivors — those with strong capital bases and trading-savvy management — could become a new category of Bitcoin asset managers leading the next bull market.
“Bitcoin itself will continue to evolve,” the report concluded. “Digital Asset Treasury firms that adapt now may still generate meaningful alpha.”
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.