What happened?
Retail investors chasing Bitcoin exposure through public companies lost roughly $17 billion as share premiums that once priced firms far above their actual BTC holdings evaporated. Analysts say investors overpaid by about $20 billion while companies used inflated stock sales to quietly buy more Bitcoin. That “financial magic” faded and those NAV illusions have mostly normalized.
Who does this affect?
This hits retail shareholders who bought treasury-style crypto stocks like Metaplanet and Strategy hardest, wiping out big chunks of paper gains. It also matters for the companies themselves, which now trade closer to the value of the Bitcoin on their balance sheets and must adapt. And the whole sector — new treasury issuers, investors, and asset managers — will feel the shakeout as capital and attention shift.
Why does this matter?
Market-wise, the loss of premium forces a valuation reset that turns headline-grabbing treasuries into either plain BTC plays or firms that need real trading skill to add value. That normalization should favor disciplined, arbitrage-driven asset managers with strong capital and trading teams and makes it harder for new entrants to grab market share. Overall, the shift could reshape who benefits in the next crypto cycle and create concentrated winners while reducing speculative distortions.