Digital Asset Companies Are Weakening Bitcoin Investors

Bitcoin investors have encountered a notable development. According to a report published by 10X Research, investors have experienced a total loss of 17 billion dollars in digital asset companies where they indirectly invested in Bitcoin. The report reveals that companies like Metaplanet and Michael Saylor's Strategy, which accumulate Bitcoin through a digital asset treasury model, have caused significant losses for their investors.

According to Bloomberg, these losses stem from the inflated valuations of the stocks of these companies. It is stated that investors preferred to purchase these stocks instead of directly investing in Bitcoin, but these choices have resulted in high costs. Analysts emphasize that the value derived from the Bitcoin reserves of these companies is disconnected from market realities. Particularly, the stocks of Strategy are noted to be trading at over 50% premium compared to the company's existing Bitcoin holdings.

10X Research indicates that investments in “Bitcoin-themed” stocks provide much lower returns than directly holding Bitcoin. High demand for these companies has increased, especially with the growing popularity of the publicly traded digital asset treasury concept, and the report warns investors against these overvalued instruments. Experts point out that there is a real risk of a price bubble in these firms, which retail investors have turned to in hopes of safe access to Bitcoin.

Among the important points investors should monitor are being more cautious about the real valuations of Bitcoin and related digital asset companies. Avoiding investments in highly inflated stocks could be key to protecting against potential losses. Therefore, directly purchasing Bitcoin carries less risk compared to indirect investments.