Retail investors have incurred losses of approximately $17 billion due to the collapse of stock prices in Bitcoin holding companies, according to a report by 10X Research. The report indicates that companies such as Metaplanet and Michael Saylor's Strategy issued shares at inflated premiums, significantly above their actual Bitcoin holdings. This strategy allowed them to purchase more Bitcoin, but the recent market correction has drastically reduced these premiums, leaving investors with substantial losses. Strategy's stock, for instance, now trades at 1.4 times its Bitcoin holdings, a sharp decline from previous levels of 3-4 times. The report suggests that Bitcoin holding companies must adapt beyond relying on net asset value illusions to ensure their survival in the evolving market landscape.
Retail Investors Face $17 Billion Loss in Bitcoin Equity Premium Collapse
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