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

Digital Asset Treasury (DAT) stocks have experienced significant declines, with some losing over 50% of their value since 2025 peaks, raising concerns about whether this decline is justified or overly pessimistic. As Bitcoin itself has fallen around 20% from its all-time high, several DAT stocks have plummeted even more dramatically. Experts argue that Bitcoin-focused treasuries might be undersold, while those with multi-asset strategies could face greater risks. This situation has pushed market valuations close to or below the value of underlying crypto holdings, complicating capital raising efforts for these firms. The effectiveness of their recovery hinges largely on Bitcoin's rebound, which may be influenced by important macroeconomic indicators, such as inflation rates and Federal Reserve monetary policy. The article also highlights that despite the current slump, some firms like Galaxy Digital saw substantial year-to-date gains, indicating the potential for recovery within a longer-term bullish trend for well-managed DAT stocks if market conditions improve.

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