Crypto venture capital firm Pantera Capital has invested $300 million in companies with crypto treasuries, predicting that their yields will be better than crypto exchange traded funds (ETFs). Pantera’s general partner Cosmo Jiang and content head Erik Lowe said that digital asset treasuries (DATs) can generate yield to grow net asset value per share, resulting in more underlying token ownership over time than just holding coins. They added that owning a DAT could offer higher return potential compared to holding tokens directly or through ETFs. Pantera has invested more than $300 million in crypto treasury firms based in US, UK and Israel that hold various tokens, including Bitcoin, Ether, Solana and several other altcoins. These DATs are taking advantage of their unique situations to employ strategies to grow their digital asset holdings in a per-share accretive way. The crypto treasury companies are the hottest trend on Wall Street, having collected billions of dollars from investors and seen their share prices soar. The Ethereum treasury company BitMine Immersion Technologies was the first investment out of the Pantera DAT Fund, as it exemplifies a company with a clear strategic roadmap and the leadership to execute it.

In two and a half months, BitMine has become the biggest Ether treasury company and has the third-largest holdings of crypto among the public companies globally. It holds almost 1.2 million ETH, worth about $5.3 billion, and aims to acquire 5% of the token’s total supply. The company’s model increases tokens per share through issuing stock as a premium to NAV (net asset value), using convertible bonds to monetize volatility, and generating staking rewards and decentralized finance yields. Pantera said that the BitMine’s ability to sustainably execute its strategy will pay out over time, and it has already attracted backing from traditional finance institutional heavyweights, including Stan Druckenmiller, Bill Miller and ARK Invest. The shares of Bitmine (BMNR) have gained more than 1,300% since the firm started its ETH buying strategy at the end of June. Over the same period, Ether has gained almost 90%. Pantera expect that the growth story of the highest quality DATs will come to be appreciated by more institutional investors, just like what has happened with Strategy. Not all agree that crypto treasury companies are destined to succeed. The Ethereum co-founder Vitalik Buterin cautioned that overleveraging could lead to their downfall if not responsibly managed.