Are Digital Asset Treasury Stocks Oversold Amid Bitcoin's Slump?

Digital Asset Treasury (DAT) stocks have experienced a drastic decline, with some falling between 50% to 90% from their 2025 peaks, bringing their valuations close to the value of their cryptocurrency holdings. Bitcoin itself has dropped approximately 20% from its all-time high earlier this year. Experts express a divide in the outlook for these stocks; Bitcoin-focused treasuries seem to be oversold while multi-asset DATs face more risks. A significant aspect affecting a recovery for DAT stocks is their correlation with Bitcoin’s price rebound, which may rely on favorable macroeconomic indicators, including softer inflation rates and potential interest rate cuts by the Federal Reserve. Current market dynamics suggest that DAT stocks trading below their crypto holdings pressure these companies, making it difficult to raise funds. Long-term performance varies, as certain firms, like Galaxy Digital, have shown substantial gains for the year, indicating that the recent selloff might just be a correction within a broader bullish trend. The crucial factor remains Bitcoin’s ability to regain momentum, which could allow DAT stocks to follow suit and potentially recover.

Source 🔗