Retail investors lost an estimated $17B chasing Bitcoin exposure through treasury firms like Metaplanet and MicroStrategy. Analysts say the “financial magic” is over as share premiums collapse, though adaptive firms could still yield 15–20% returns.
00:00It's Benzinga bringing Wall Street to Main Street.
00:02Retail investors have lost an estimated $17 billion trying to get Bitcoin exposure through digital asset treasury firms such as MetaPlanet and Michael Saylor's strategy, that according to Bloomberg.
00:12Share prices of Bitcoin treasury firms have collapsed, leaving many investors with losses.
00:16Analysts say the age of financial magic for these companies is ending, and according to TEDxResearch, those premiums have now collapsed.
00:22The strategy shares trading just 1.4 times the value of its Bitcoin reserves, down from multiples of three or four.
00:29Bitcoin treasury firms sold shares above their asset value to fund repeated Bitcoin purchases, inflating valuations like MetaPlanet from $1 billion to $8 billion before collapsing to $3.1 billion.
00:40TEDxResearch said firms that adapted to an asset management style model could still achieve 15% to 20% annual returns.
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