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

Digital Asset Treasury (DAT) stocks have significantly dropped, with many plunging 50-90% from their peak valuations, now trading close to the value of their underlying crypto assets. Experts are divided on whether this sell-off is justified. While Bitcoin has decreased approximately 20% from its 2025 high, DAT stocks have fallen faster, leading to compressed valuations. Some analysts suggest Bitcoin-focused treasuries may be oversold, while those with multi-asset exposures face greater risk. The recovery of DAT stocks is believed to be tied to a potential Bitcoin rebound, influenced by key macroeconomic indicators such as inflation rates and decisions made by the Federal Reserve. Notably, some companies like Galaxy Digital have shown strong year-to-date performance despite the broader downturn. The article emphasizes that selectivity will be crucial in the recovery phase, with disciplined Bitcoin treasuries likely to be favored by investors over those with diversified yet fragmented asset exposures.

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