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Pantera Capital, a crypto venture capital company, has committed $300 million into a group of companies that manage cryptocurrencies.
The company stated that it expects these businesses to outperform crypto exchange-traded funds (ETFs) when it comes to long-term gains.
According to statements from Cosmo Jiang and Erik Lowe of Pantera, these firms, called digital asset treasuries (DATs), regularly put their crypto holdings to work.
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Instead of simply holding coins, DATs generate earnings through methods like staking and other on-chain strategies, which allow each share to grow in value over time.
The fund’s capital has gone to companies based in the United States, the United Kingdom, and Israel. These businesses hold various cryptocurrencies, including Bitcoin
Pantera said these firms use different methods based on their individual strengths to build up their digital assets and increase shareholder value.
One of the first companies to receive an investment from Pantera’s DAT Fund was BitMine Immersion Technologies, an Ethereum-focused treasury led by Tom Lee.
While Pantera acknowledges that the long-term success of this approach is yet to be fully proven, the firm noted that institutional investors, including Stan Druckenmiller, Bill Miller, and ARK Invest, have already supported BitMine.
Meanwhile, Metaplanet and The Smarter Web Company recently added about $100 million worth of Bitcoin to their reserves. What is each company aiming to achieve with this BTC purchase? Read the full story.
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