Pantera Capital has revealed it has invested over $300 million into digital asset treasury (DAT) corporations up to now, a rising class of public corporations that maintain crypto reserves on their stability sheets.
Pantera disclosed the determine for the primary time in its newest blockchain letter revealed Tuesday. The agency mentioned its funding thesis for DAT corporations is easy: “DATs can generate yield to develop web asset worth per share, leading to extra underlying token possession over time than simply holding spot. Subsequently, proudly owning a DAT might supply larger return potential in comparison with holding tokens straight or by way of an ETF.”
Notably, Pantera has raised two DAT-specific funds just lately with out disclosing the sizes of the funds. However Pantera Capital normal associate Cosmo Jiang informed The Block that the 2 funds have collectively raised over $100 million. When requested if the agency is planning to boost a 3rd DAT fund, he mentioned it hasn’t been determined but.
Pantera’s DAT portfolio spans eight tokens — Bitcoin, Ethereum, Solana, BNB, Toncoin, Hyperliquid, Sui, and Ethena — and covers corporations primarily based in the US, the UK, and Israel. These corporations embody BitMine Immersion, Twenty One Capital, DeFi Improvement Corp, SharpLink Gaming, Satsuma Expertise, Verb Expertise Firm, CEA Industries, and Mill Metropolis Ventures III.
Pantera notably highlighted BitMine Immersion to again its DAT thesis. Since just lately launching its Ethereum treasury technique, BitMine has grow to be the biggest ETH treasury and the third-largest DAT globally, with 1.15 million ETH value $4.9 billion as of Aug. 10. Pantera mentioned BitMine’s technique is grounded within the thesis that Ethereum will probably be a significant macro pattern for the subsequent decade as Wall Road migrates onchain, pushed by progress in tokenization and stablecoins.
BitMine has grown ETH per share by about 330% in its first month — quicker than Technique’s (previously MicroStrategy) early tempo in Bitcoin — primarily by issuing inventory above web asset worth and producing staking rewards, Pantera famous. Its share worth has risen from $4.27 on the finish of June to $51 in simply over a month, with Pantera attributing roughly 60% of the acquire to ETH-per-share progress, 20% to ethereum’s worth rally, and 20% to an growth in its NAV a number of to 1.7x.
Pantera mentioned the premium is justified when traders imagine a DAT can sustainably develop NAV per share, drawing an analogy to prime banks that commerce above ebook worth. “Banks search to generate yield on their belongings, and traders reward a valuation premium to these they imagine can sustainably generate yield above their price of capital. The very best high quality banks commerce at a premium to NAV (or ebook worth), akin to JPM at >2x,” Pantera mentioned.
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