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

Digital Asset Treasury (DAT) stocks are facing a terrible test, with immoderate plunging much than 50% from their 2025 peaks and present trading adjacent the worth of their underlying crypto holdings.

The melodramatic sell-off poses a captious question for investors: is this a justified illness oregon a terrible overreaction creating a imaginable opportunity?

Data uncover a stark picture. While Bitcoin is down astir 20% from its 2025 all-time high, per CoinGecko data, DAT stocks person fallen much swiftly.

Strategy’s banal is down 50% from its July peak, portion Metaplanet and SharpLink person plummeted astir 80% and 90%, respectively. As a result, their marketplace valuations person compressed, pushing market-net-asset-value oregon mNAV adjacent to oregon beneath 1, according to StrategyTracker.

Typically, erstwhile mNAV falls beneath oregon approaches one, it makes it harder for companies to rise currency by offering up their stocks, experts antecedently told Decrypt.

“When DAT stocks commercialized beneath the worth of their crypto holdings, it means the marketplace is nary longer rewarding them for outsized accumulation successful the aforesaid mode it erstwhile did,” Yaroslav Patsira, Fractional Director astatine CEX.IO, told Decrypt. “This doesn't marque them dead, but they are nether existent pressure, arsenic trading beneath their holdings could unit them to merchantability immoderate of their holdings to screen costs.”

This caller discourse helps differentiate betwixt the assorted DATs.

"For the stronger Bitcoin names, this looks much oversold than finished," Fakhul Miah, Managing Director of Gomining Institutional, told Decrypt. He explained that "Bitcoin-focused treasuries with cleaner equilibrium sheets are holding up amended than multi-asset DATs, galore of which pursuit higher-risk tokens."

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A longer-term view, however, reveals a much nuanced story.

Despite the caller selloff, Galaxy Digital's year-to-date show remains up a staggering 73.4%, and SharpLink is up 43.2%, vastly outperforming Bitcoin’s 8.6% gain—suggesting that the caller slump could beryllium a crisp correction wrong a longer-term bullish trend, not its end.

The divergence highlights the high-risk, high-reward quality of these stocks, particularly considering that DATs are high-beta proxies for crypto exposure.

"This rhythm volition apt beryllium much selective with investors rewarding disciplined Bitcoin treasuries with transparent issuance, portion multi-asset treasuries with fragmented vulnerability whitethorn lag, adjacent if the marketplace turns risk-on," Miah added.

“When integer assets underperform, DATs autumn harder. That's expected,” Patsira noted.