Venture firm Pantera Capital has announced its plans to invest $300 million in companies managing large crypto treasuries, believing their performance could surpass traditional ETFs.
What Are Crypto Treasuries?
Digital Asset Treasuries (DATs) are viewed as vehicles capable of generating yield and increasing net asset value (NAV) per share over time. Cosmo Jiang and Erik Lowe, partners at Pantera Capital, argue that such structures can lead to more token ownership than merely holding spot assets.
Pantera Capital's Initial Investments
Pantera's first investment from the DAT Fund went to BitMine Immersion Technologies, which has quickly become the largest Ether treasury and the third-largest crypto holder among public companies. BitMine now controls nearly 1.2 million ETH, valued at about $5.3 billion, and aims to accumulate 5% of Ether’s total supply.
Risks and Market Prospects
Despite risks associated with excessive leverage and changing market conditions, Jiang and Lowe believe that high-quality crypto treasuries will gain popularity among institutional investors. They note that such firms could employ unique strategies, including staking and DeFi yields.
Pantera Capital continues to emphasize the potential of crypto treasuries as a promising investment tool that can yield greater returns, despite existing risks in the market.
