Ethereum News Today: Pantera Invests $300M in Crypto Treasury Firms to Outperform ETFs

Pantera Capital has deployed $300 million into digital asset treasury (DAT) firms, betting that these companies can generate higher returns than crypto ETFs through yield generation and asset appreciation [1]. The firm’s general partners, Cosmo Jiang and Erik Lowe, argue that DATs can grow their net asset value per share over time, leading to greater token ownership than direct crypto holdings or ETFs [1]. The investments target companies in the U.S., U.K., and Israel that hold Bitcoin, Ethereum, Solana, and other altcoins [1].

Pantera’s first move in the DAT space is through BitMine, an Ethereum-focused treasury firm co-founded by Tom Lee [1]. In just two and a half months, BitMine has become the largest ETH treasury company and holds the third-largest crypto position among public entities globally, with nearly 1.2 million ETH valued at around $5.3 billion [1]. The firm’s strategy involves issuing stock at a premium to net asset value, using convertible bonds to capitalize on volatility, and generating staking and DeFi yields to increase token holdings per share [1].

BitMine’s stock, listed under the ticker BMNR, has surged over 1,300% since June, significantly outperforming Ethereum’s nearly 90% gain during the same period [1]. Pantera has highlighted BitMine as a model for institutional adoption, noting support from figures like Stan Druckenmiller, Bill Miller, and ARK Invest [1].

Despite the positive momentum, crypto treasuries come with notable risks. Ethereum co-founder Vitalik Buterin has warned that overleveraging could lead to their collapse if not managed responsibly [1]. Framework Venture co-founder Vance Spencer has noted that a large portion of ETH acquired by these firms is often redirected into on-chain borrowing markets, increasing exposure to volatility [1]. Standard Chartered analysts have also issued caution, pointing to the risk of solvency for Bitcoin treasury companies if the price of Bitcoin drops sharply [1].

Pantera remains confident that top DATs will continue to attract institutional interest, drawing parallels to the success of companies like Strategy [1]. The move underscores a broader trend on Wall Street, where DATs have raised billions and seen their stock prices rise rapidly. Yet, as the market becomes more competitive, the space remains high-risk, with both significant potential and the threat of failure looming over participants [1].

Source:

[1] Cointelegraph – [https://cointelegraph.com/news/pantera-bets-300m-crypto-treasury-firms-yields-higher-than-etfs](https://cointelegraph.com/news/pantera-bets-300m-crypto-treasury-firms-yields-higher-than-etfs)