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

Digital Asset Treasury (DAT) stocks have recently seen sharp declines, with some losing 50-90% of their peak values. This sell-off raises questions about whether the decline is justified or overly reactionary. Notably, while Bitcoin itself is down about 20% from its 2025 high, DAT stocks have dropped even more significantly. Currently, some DAT stocks trade at or below the value of their underlying crypto assets. Industry experts suggest that Bitcoin-focused treasuries may be oversold, whereas multi-asset DATs face heightened risks. Long-term performance data indicates that firms like Galaxy Digital and SharpLink have considerably outperformed Bitcoin itself over the year, suggesting that recent declines may merely represent corrections in a continuing bullish trend. The recovery of DAT stocks is closely tied to a potential rebound in Bitcoin prices, which may be influenced by upcoming macroeconomic indicators such as inflation data and Federal Reserve rate adjustments. If these factors trend positively for Bitcoin, DAT stocks are expected to follow suit, highlighting the interconnected nature of these financial instruments.

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