Ethereum News Today: Pantera Invests $300M in Crypto Treasury Firms Targeting Higher Yields Than ETFs

Pantera Capital, a leading venture capital firm in the cryptocurrency industry, has allocated $300 million to companies with digital asset treasuries (DATs), a strategic move the firm claims could yield higher returns than traditional crypto ETFs [1]. The investment focuses on firms operating in the U.S., U.K., and Israel, which hold a variety of cryptocurrencies, including Bitcoin, Ether, and Solana [1]. Pantera’s general partner, Cosmo Jiang, and content head, Erik Lowe, argue that DATs can grow their net asset value per share through yield generation, enabling more token ownership over time compared to holding assets directly or via ETFs [1].

One of the first investments from Pantera’s DAT Fund is BitMine, an Ethereum-focused treasury company led by Tom Lee. Since adopting an aggressive ETH acquisition strategy in late June, BitMine has become the largest Ethereum treasury firm and the third-largest holder of crypto assets globally [1]. The company currently holds nearly 1.2 million ETH, valued at approximately $5.3 billion, with ambitions to acquire 5% of the token’s total supply [1]. BitMine’s strategy includes issuing stock at a premium to NAV, using convertible bonds to capture volatility, and earning income through staking and DeFi yield generation [1].

The firm’s performance has already shown promise, with its share price rising over 1,300% since the strategy’s launch—far outpacing Ether’s roughly 90% gain during the same period [1]. Pantera highlighted BitMine’s growing institutional support, including backing from traditional finance figures like Stan Druckenmiller, Bill Miller, and ARK Invest [1]. The firm believes the best DATs could attract further institutional adoption, mirroring the success seen by similar strategies in the past [1].

Despite the optimism, the DAT sector is not without risks. Ethereum co-founder Vitalik Buterin has warned of the dangers of overleveraging, while Framework Venture’s Vance Spencer noted that a large portion of ETH held by treasuries may be funneled into on-chain lending markets [1]. Standard Chartered analysts also cautioned in June that Bitcoin treasury companies could face severe losses if the price of BTC drops sharply [1].

Pantera’s $300 million investment signals a broader shift in institutional capital toward DATs as a potentially more dynamic and yield-generative alternative to ETFs. However, the success of these investments will depend on market dynamics, leverage management, and the execution of individual strategies by the underlying firms [1]. As the sector matures, the long-term viability of DATs will hinge on both performance and regulatory developments [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)