Digital asset treasuries seen as emerging high-yield alternative for institutional investors
Pantera Capital has committed $300 million to crypto treasury companies, arguing they could deliver stronger returns than holding digital assets through spot exchange-traded funds (ETFs).
In a statement on Tuesday, Pantera general partner Cosmo Jiang and content head Erik Lowe said digital asset treasuries (DATs) can grow net asset value per share by generating yield, resulting in increased token ownership over time.
“Owning a DAT could offer higher return potential compared to holding tokens directly or through an ETF,” they wrote.
The venture firm’s investments span the US, UK, and Israel, targeting companies that hold and actively manage portfolios including Bitcoin (BTC), Ether (ETH), Solana (SOL), and other altcoins.
Pantera cited BitMine Immersion Technologies — chaired by Tom Lee — as the first investment from its DAT Fund, describing it as a company with a “clear strategic roadmap” and proven leadership. In just over two months, BitMine has become the largest Ether treasury company and now ranks third globally in total crypto holdings among public firms.
The company holds 1.2 million ETH worth approximately $5.3 billion and aims to acquire 5% of Ether’s total supply. Its strategy includes issuing stock at a premium to net asset value, using convertible bonds to monetize volatility, and generating yield through staking and decentralized finance platforms.
Pantera noted that BitMine’s execution has already attracted support from major institutional names including Stan Druckenmiller, Bill Miller, and ARK Invest.
Outperforming the Market
Since launching its ETH accumulation strategy in late June, BitMine’s shares (BMNR) have surged over 1,300%, far outpacing Ether’s ~90% gain in the same period.
“We expect the growth story of the highest quality DATs will be appreciated by more institutional investors, just as it happened with Strategy,” Pantera said.
Despite growing interest, some analysts warn the market for crypto treasury companies is becoming crowded. Ethereum co-founder Vitalik Buterin has cautioned against overleveraging, while others, including Standard Chartered, have warned that sharp declines in crypto prices could push some treasuries underwater.
Pantera maintains that disciplined strategies and sustainable yield generation will determine which DATs can thrive as institutional demand accelerates.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.