Pantera Capital Bets $300 Million on Crypto Treasury Companies

Pantera Capital has invested $300 million into a growing sector of the digital asset market — crypto treasury companies — betting that their yields will outperform traditional crypto exchange-traded funds (ETFs).

In a statement on Tuesday, Pantera general partner Cosmo Jiang and content head Erik Lowe said they believe digital asset treasuries (DATs) can generate higher returns by growing net asset value per share, leading to increased underlying token ownership over time. 

“Owning a DAT could offer higher return potential compared to holding tokens directly or through an ETF,” they explained.

The firm has deployed capital into companies based in the US, UK, and Israel that hold a mix of Bitcoin, Ether, Solana, and other altcoins. These firms use specialized strategies to expand their token holdings, leveraging their unique positions in the market.

BitMine Emerges as Pantera Flagship Example

One standout in Pantera’s portfolio is BitMine Immersion Technologies, an Ethereum-focused treasury company chaired by Wall Street veteran Tom Lee. BitMine is the largest Ether treasury firm and ranks third globally among public companies in total crypto holdings.

Currently, the company holds nearly 1.2 million ETH valued at around $5.3 billion, with a goal of acquiring 5% of the token’s total supply. Its strategy combines issuing stock at a premium to net asset value, using convertible bonds to capitalize on volatility, and earning staking rewards along with decentralized finance yields.

Pantera said BitMine’s disciplined execution has already drawn support from major institutional investors, including Stan Druckenmiller, Bill Miller, and ARK Invest. Since launching its Ether accumulation plan in late June, BitMine’s shares (BMNR) have surged over 1,300%, compared with an 90% rise in ETH over the same period.

Analysts Warn of Risks Ahead

While crypto treasury companies have become a hot trend on Wall Street, some market observers caution that the sector is becoming crowded and vulnerable. Ethereum co-founder Vitalik Buterin recently warned that overleveraging could threaten the survival of these firms if market conditions turn.

Vance Spencer, co-founder of Framework Ventures, suggested much of the ETH held by treasuries will end up in on-chain borrowing markets, increasing systemic exposure. Analysts at Standard Chartered also noted that Bitcoin treasury firms could face significant losses if BTC prices drop sharply.

Despite the risks, Pantera believes high-quality DATs will gain broader acceptance among institutional investors, potentially mirroring the trajectory of successful long-term investment strategies.