tl;dr
Pantera Capital has invested $300 million in digital asset treasury companies (DATs), including BitMine Immersion, Twenty One Capital, and others holding major cryptocurrencies like Bitcoin and Ethereum across the U.S., U.K., and Israel. Pantera argues DATs offer better risk-adjusted returns than di...
Pantera Capital has revealed for the first time that it has invested $300 million in digital asset treasury companies (DATs), highlighting this strategy in its August 12 Blockchain Letter. Pantera’s portfolio includes notable DAT investments such as BitMine Immersion, Twenty One Capital, DeFi Development Corp, SharpLink Gaming, Satsuma Technology, Verb Technology Company, CEA Industries, and Mill City Ventures III. These companies hold significant cryptocurrencies including Bitcoin, Ethereum, Solana, BNB, TON, Hyperliquid, Sui, and Ethena, operating across the U.S., U.K., and Israel.
Pantera contends that DAT investments provide superior risk-adjusted returns compared to direct cryptocurrency holdings. They assert that DATs generate yield that compounds the net asset value (NAV) per share, creating accretive token exposure over time rather than merely holding spot assets. This approach is exemplified by BitMine Immersion, Pantera’s inaugural and flagship DAT investment, chaired by Fundstrat's Tom Lee. BitMine targets controlling 5% of Ethereum’s total supply and has grown to become the largest ETH treasury holder globally, with 1.15 million ETH valued at $4.9 billion as of August 10.
BitMine also ranks as the 25th most liquid U.S. stock with an average daily trading volume of $2.2 billion, showcasing substantial market activity. Pantera draws parallels between DAT valuations and traditional banks, suggesting that premium valuations for DATs are justified when investors have confidence in a company’s ability to sustainably increase NAV. They highlight that top-tier banks like JPMorgan trade at more than twice their book value, and similarly, investors might value a DAT above its NAV if it demonstrates sustainable growth in NAV per share.