Digital Asset Treasury (DAT) stocks are facing a severe test, with some plunging more than 50% from their 2025 peaks and now trading near the value of their underlying crypto holdings.
The dramatic sell-off poses a critical question for investors: is this a justified collapse or a severe overreaction creating a potential opportunity?
Data reveal a stark picture. While Bitcoin is down roughly 20% from its 2025 all-time high, per CoinGecko data, DAT stocks have fallen more swiftly.
Strategy’s stock is down 50% from its July peak, while Metaplanet and SharpLink have plummeted nearly 80% and 90%, respectively. As a result, their market valuations have compressed, pushing market-net-asset-value or mNAV close to or below 1, according to StrategyTracker.
Typically, when mNAV falls below or approaches one, it makes it harder for companies to raise cash by offering up their stocks, experts previously told Decrypt.
“When DAT stocks trade below the value of their crypto holdings, it means the market is no longer rewarding them for outsized accumulation in the same way it once did,” Yaroslav Patsira, Fractional Director at CEX.IO, told Decrypt. “This doesn’t make them dead, but they are under real pressure, as trading below their holdings could force them to sell some of their holdings to cover costs.”
This new context helps differentiate between the various DATs.
“For the stronger Bitcoin names, this looks more oversold than finished,” Fakhul Miah, Managing Director of Gomining Institutional, told Decrypt. He explained that “Bitcoin-focused treasuries with cleaner balance sheets are holding up better than multi-asset DATs, many of which chase higher-risk tokens.”
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A longer-term view, however, reveals a more nuanced story.
Despite the recent selloff, Galaxy Digital’s year-to-date performance remains up a staggering 73.4%, and SharpLink is up 43.2%, vastly outperforming Bitcoin’s 8.6% gain—suggesting that the recent slump could be a sharp correction within a longer-term bullish trend, not its end.
The divergence highlights the high-risk, high-reward nature of these stocks, especially considering that DATs are high-beta proxies for crypto exposure.
“This cycle will likely be more selective with investors rewarding disciplined Bitcoin treasuries with transparent issuance, while multi-asset treasuries with fragmented exposure may lag, even if the market turns risk-on,” Miah added.
“When digital assets underperform, DATs fall harder. That’s expected,” Patsira noted.
