Crypto Venture Capital firm Pantera Capital has invested $ 300 million in companies with crypto tragians, predicting that their yield would be better than the Crypto Exchange-Trade Fund (ETF).
Pantera’s General Partner, Cosmo Jiang and Content Head, Eric Lowe said on Tuesday that the firm believes that digital asset Treasury (DATS) “may generate yield to increase the net property price per share, resulting in a more underlying token owned by time.”
“Therefore, having a dat owner can be offered a higher returns capacity directly than placing tokens directly or through ETF.”
He said that Pantera has deployed more than $ 300 million in Crypto Treasury firms located in the US, UK and Israel, which keep various tokens including bitcoin (BTC), Ether (ETH), Solan (Sol) and many other altcines.
Jiang and Lowe explained, “These DATs are taking advantage of their unique conditions to employ strategies to increase their digital asset holding per share.”
The so -called crypto treasury companies are the hottest trend on Wall Street to collect billions of dollars from investors and raise their share prices. However, some have warned that there is a crowd in the market for such firms and many people may collapse.
Model Pantra Pin Bitmine as Example
The Tom Lee-Caid Etharium Treasury Company is the first investment out of the Bittermine Emarson Technologies Pentara DAT fund, as the firm said that it “gives an example of a company with” a clear strategic roadmap and leading to execute it. “
In about two and a half months, Bitmine has become the largest ether treasury company and is Crypto’s third largest holding among public companies globally.
It is about 1.2 million ETH priced around $ 5.3 billion, and targets to acquire 5% of the total supply of tokens.
Connected: Etharium hit the new multier high as Tom Lee’s Bitmine Schemes
The firm’s model increases the token per share, which releases stock on NAV (Net Asset Value) at a premium, uses convertible bonds to use instability, and produces stakeing rewards and decentralized finance yields.
Pantera stated that the ability to continuously execute the Bittimine’s own strategy “will play out with time”, but it has already supported traditional finance institutional heavyweight, including Stan Druknamiller, Bill Miller and Arc Invest.
The evidence is in stock price
Shares of BMNR (BMNR) gained more than 1,300% since introduced their ETH purchasing strategy in late June. In the same period, Ether has obtained around 90%.
“We hope that the development story of the highest quality DATS will be appreciated by more institutional investors, just as what has happened with a strategy,” said Pantera.
Crypto Treasury not without risk
Everyone does not agree that Crypto Treasury companies are lucky to be successful.
Earlier this month, Atherem’s co-founder Vitallic Butlerin warned that overlavezing could lead to their collapse if not managed responsibly.
Framework Venture co-founder Vance Spencer said on Tuesday that most ETHs were scooped by Treasury, “Onchain will be placed in borrowed markets, drawing stables for loops or form.”
Standard Chartered analysts warned in June that the new wave of bitcoin treasury companies may be at risk of going under water if the price of bitcoin declines rapidly.
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