Alisa Davidson
Revealed: Could 30, 2025 at 11:00 am Up to date: Could 30, 2025 at 10:30 am
Edited and fact-checked:
Could 30, 2025 at 11:00 am
In Transient
Pantera Capital backs DATs as rising public market crypto publicity, adopting MicroStrategy’s everlasting capital mannequin with rising conviction and focused investments.
US-based enterprise capital and hedge fund agency, Pantera Capital has recognized Digital Asset Treasury firms (DATs) as an rising phase for public market cryptocurrency publicity. These firms observe a mannequin much like MicroStrategy, using everlasting capital autos listed on public inventory exchanges to supply entry to digital belongings. After thorough evaluation, Pantera Capital has developed confidence on this funding method and has made centered investments accordingly.
The agency emphasizes the significance of difficult present assumptions and notes that the continued premium noticed in MicroStrategy’s inventory, together with endorsement from elementary buyers corresponding to Capital Group and Norges, motivated them to discover uneven alternatives inside the DAT sector. Whereas the persistence of this premium is unsure, there’s a rationale for investing in Digital Asset Treasury firms, which can justify valuations above their underlying web asset worth (NAV).
The core bullish argument means that shareholders can accumulate extra Bitcoin per share (BPS) by way of MicroStrategy over time than by merely buying Bitcoin straight. This thesis rests on three situations: first, inventory costs can deviate from honest worth, as markets might behave irrationally at occasions; second, MicroStrategy’s inventory volatility permits the corporate to capitalize on this by way of convertible bond gross sales or by writing name choices for premium earnings; and third, the corporate’s administration possesses the monetary experience needed to use these alternatives.
On a broader scale, an necessary issue contributing to the rise of DATs is their capacity to merge conventional investor preferences with cryptocurrency publicity by successfully changing crypto holdings into equity-like devices. The sturdy curiosity in merchandise like MicroStrategy inventory, associated ETFs, and newer DATs signifies {that a} substantial quantity of capital was beforehand deterred by the complexities related to native crypto investments, corresponding to pockets administration and trade accounts. The inflow of capital by way of extra acquainted conventional channels is considered as a constructive improvement for the market.
From a provide perspective, DATs differ from ETFs in that investments in these autos are likely to lock up digital belongings for longer durations, as they function equally to closed-end funds with restricted chance of promoting the underlying cash. In distinction, belongings held by ETFs might fluctuate extra freely as buyers purchase and promote shares. This structural distinction might positively influence asset costs, each by rising treasury Bitcoin holdings by way of DAT purchases and by lowering downward stress from gross sales.
Pantera Capital Invests In Twenty One Capital, DeFi Growth Corp, And Sharplink, Advancing Its Digital Asset Treasury Technique
Pantera Capital holds positions in a number of DAT firms, with one of the crucial distinguished being Twenty One Capital, led by Bitcoin advocate Jack Mallers. This firm goals to duplicate the MicroStrategy method and is supported by notable business entities together with Tether, Softbank, and Cantor Fitzgerald. Twenty One Capital has reached a scale enough to make the most of a broad vary of capital market devices whereas sustaining a comparatively smaller market capitalization, which can enable it to develop Bitcoin per share (BPS) extra quickly than MicroStrategy and doubtlessly justify the next valuation premium. Pantera was the most important investor of their non-public funding in public fairness (PIPE) providing.
Pantera additionally spearheaded the funding in DeFi Growth Corp, which performed a key function in initiating the DAT development inside the USA. Underneath the management of CEO Joseph Onorati and CIO Parker White, DeFi Growth Corp applies the MicroStrategy mannequin to the Solana ecosystem. Solana presents a compelling various to Bitcoin as a result of a number of components: its earlier stage of improvement affords doubtlessly larger upside; its increased volatility offers alternatives to capitalize on worth fluctuations; the staking yield element helps development in Solana per share; and there’s comparatively much less public market publicity, with no publicly traded miners or spot ETFs at present out there.
Extra lately, Pantera invested in Sharplink Gaming, the primary Ethereum-focused digital asset treasury firm within the US. SBET is supported by Consensys, a number one Ethereum software program agency with which Pantera has maintained a longstanding relationship spanning over ten years.
Pantera’s involvement in these companies, and different ventures, mixed with their constructive reception out there, has helped spark curiosity in further firms following the DAT mannequin, lots of which Pantera continues to evaluate actively.
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About The Creator
Alisa, a devoted journalist on the MPost, focuses on cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a eager eye for rising traits and applied sciences, she delivers complete protection to tell and interact readers within the ever-evolving panorama of digital finance.
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Alisa Davidson
Alisa, a devoted journalist on the MPost, focuses on cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a eager eye for rising traits and applied sciences, she delivers complete protection to tell and interact readers within the ever-evolving panorama of digital finance.
Extra articles
