Pantera Capital Bets $300M on Crypto Treasury Firms, Sees Yields Beating ETFs

Pantera Capital has committed $300 million to a growing niche of companies that hold significant digital asset treasuries, arguing that their performance could outpace crypto exchange-traded funds (ETFs).

In a note on Tuesday, Pantera general partner Cosmo Jiang and content head Erik Lowe said 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 spot.”

They argued that owning shares in a DAT could deliver higher returns than holding tokens directly or through an ETF.

Pantera Backs DATs Using Strategies to Boost Per-Share Token Holdings

The firm has backed DATs in the US and the UK that hold Bitcoin, Ether, Solana, and other altcoins.

Jiang and Lowe said these companies use their unique position to “employ strategies to grow their digital asset holdings in a per-share accretive way.”

Crypto treasury companies have emerged as one of the hottest trends on Wall Street, drawing billions from investors and sending share prices soaring.

However, industry voices caution that the market could become overcrowded, leaving some players vulnerable to collapse.

One of Pantera’s first investments from its DAT Fund was BitMine Immersion Technologies, chaired by Tom Lee.

In just two and a half months, BitMine has become the largest Ether treasury company and the third-largest crypto holder among public firms globally.

It now holds nearly 1.2 million ETH, worth about $5.3 billion, and has set a goal of acquiring 5% of Ether’s total supply.

Dive into the investment case for Digital Asset Treasury companies (DATs) with Tom Lee (@fundstrat) and @cosmo_jiang!

Learn why DATs may be a more effective vehicle for crypto exposure than owning an ETF or holding the underlying token directly. 🔎📊 pic.twitter.com/cvAPzorx3e

— Pantera Capital (@PanteraCapital) July 3, 2025

BitMine’s strategy includes issuing stock at a premium to net asset value, using convertible bonds to monetize volatility, and generating staking and DeFi yields.

Pantera noted that the company’s ability to sustain these tactics “will play out over time,” but its approach has already drawn high-profile backers, including Stan Druckenmiller, Bill Miller, and ARK Invest.

Since launching its ETH acquisition plan in late June, BitMine’s shares (BMNR) have surged over 1,300%, compared to Ether’s nearly 90% gain in the same period.

“We expect that the growth story of the highest quality DATs will come to be appreciated by more institutional investors,” Pantera said.

Vitalik Buterin Warns Overleveraging Could Doom Crypto Treasury Firms

However, not everyone shares the optimism. Ethereum co-founder Vitalik Buterin has warned that overleveraging could sink some treasury companies if markets turn.

Framework Ventures co-founder Vance Spencer recently suggested much of the ETH bought by treasuries will end up in on-chain lending markets to loop or farm yields, adding to systemic risk.

Standard Chartered analysts also cautioned in June that Bitcoin-focused treasury firms could face trouble if BTC prices fall sharply, underscoring that the boom in DATs comes with significant downside potential.

VanEck’s head of digital asset research, Matthew Sigel, has also raised concerns about the Bitcoin treasury strategies used by certain public companies, suggesting that continued accumulation of BTC could soon harm shareholders more than help.