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

Digital Asset Treasury (DAT) stocks have faced significant declines, with some tumbling 50-90% from their 2025 peaks, now trading near their underlying crypto values. While Bitcoin is down about 20% from its all-time high, DAT stocks have experienced steeper sell-offs. Experts are divided, with Bitcoin-focused treasuries appearing oversold compared to multi-asset DATs that may face greater risk. A recovery for these stocks hinges on potential positive movements in Bitcoin's price, which is contingent on macroeconomic factors such as inflation data and Federal Reserve interest rate decisions. Companies like Galaxy Digital continue to perform well year-to-date, indicating that the slump may be a corrective phase rather than a long-term decline. The future resilience of DAT stocks is likely tied to Bitcoin's ability to regain bullish momentum, especially if inflation data supports a favorable shift in monetary policy from the Fed.

Source 🔗