- Retail investors lost billions through Bitcoin-related equities
- Companies sold shares at high premiums over actual BTC value
- 10X Research highlights risks of indirect BTC exposure
A recent report from 10X Research reveals a staggering $17 billion in estimated losses by retail investors attempting to gain Bitcoin exposure through public companies like Metaplanet and MicroStrategy. These losses weren’t from Bitcoin’s price itself, but rather from equity premiums—companies issuing shares at prices significantly higher than their actual crypto asset value.
According to Bloomberg, many investors looking to ride Bitcoin’s wave without directly buying it turned to digital asset treasury firms. These companies hold large amounts of Bitcoin and market themselves as “Bitcoin proxies” for stock investors. However, investors often paid a heavy price for this convenience.
Why Premiums Cost So Much
The core issue lies in how these companies price their stocks. Firms like Michael Saylor’s MicroStrategy have become known for regularly issuing new shares to fund more Bitcoin purchases. But each new issuance often happened at a steep premium—far above the real-time value of their BTC holdings.
For example, when Bitcoin surged in value, these firms’ stock prices climbed even faster, inflating the premium. This premium isn’t backed by more Bitcoin, but by market enthusiasm. As a result, investors were paying inflated prices without getting proportionate crypto value in return.
10X Research estimates that this overvaluation led to a combined loss of $17 billion for retail investors who bought these stocks expecting direct BTC-like returns.
The Takeaway: Do Your Research
This report serves as a crucial reminder: indirect Bitcoin exposure via equities may carry hidden risks. While it might seem safer or simpler than buying Bitcoin directly, the premium costs and stock dilution can severely impact long-term returns.
Retail investors are advised to critically evaluate the structure of these companies and understand what they’re really buying—stock in a business, not Bitcoin itself.
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