The spectacle is ending, and what’s left behind is far less glamorous: companies struggling to justify their worth in a market demanding substance over showmanship.

During the boom, these firms seemed untouchable. By issuing shares far above the real value of their Bitcoin holdings, they transformed simple asset exposure into billion-dollar valuations. Investors applauded the trick, not realizing the coins hadn’t multiplied – only the illusion of wealth had. The moment belief faded, those premiums evaporated, leaving retail holders trapped in overvalued equity while the magicians behind the curtain cashed out at the top.

What was once marketed as financial innovation now looks more like misdirection. As volatility cools and arbitrage windows vanish, the easy profits that fueled this model are gone. The industry’s next act will require something harder than marketing flair: operational discipline, transparency, and the ability to generate real alpha in an environment no longer driven by hype.

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The report from 10x Research likens the phenomenon to a magician’s sleight of hand. In their analogy, a showman promises to move gold coins between two cups without touching them. With a flourish, the trick succeeds – at least in appearance. The audience gasps, unaware that what they witnessed was only illusion. The story serves as a warning: for Bitcoin treasuries, the trick has been revealed, and the crowd is no longer spellbound.

The coming phase of the market will test which firms can perform without props. Those that relied solely on inflated premiums will likely fade as investors grow wiser to the mechanics behind the illusion. But the ones that adapt – by managing volatility, improving asset efficiency, and earning genuine returns – may yet prove that substance can outlast spectacle.

When the applause dies down and the lights come up, what remains will separate the true builders from the showmen. The magic, it seems, has finally run out.

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