Pantera Capital Backs Digital Possession Treasury Companies As Emerging Frontier For Crypto Direct Exposure

Pantera Capital backs DATs as emerging public market crypto exposure, embracing MicroStrategy’s permanent capital design with growing conviction and targeted investments. US-based venture capital and hedge fund company, Pantera Capital has actually identified Digital Possession Treasury companies (DATs) as an emerging sector for public market cryptocurrency direct exposure. These companies follow a design similar to MicroStrategy, making use of permanent capital vehicles listed on public stock market to provide access to digital possessions. After comprehensive analysis, Pantera Capital has established self-confidence in this investment method and has actually made focused financial investments accordingly. The company stresses the importance of challenging existing assumptions and notes that the continuous premium observed in MicroStrategy’s stock, together with endorsement from fundamental financiers such as Capital Group and Norges, encouraged them to check out uneven opportunities within the DAT sector. While the determination of this premium is uncertain, there is a rationale for purchasing Digital Asset Treasury companies, which may justify valuations above their underlying net asset value (NAV). The core bullish argument suggests that shareholders can accumulate more Bitcoin per share (BPS) through MicroStrategy over time than by simply buying Bitcoin directly. This thesis rests on three conditions: first, stock prices can differ from reasonable value, as markets may behave irrationally at times; second, MicroStrategy’s stock volatility enables the company to profit from this through convertible bond sales or by writing call options for premium income; and third, the company’s management has the financial expertise necessary to exploit these opportunities. On a broader scale, a key factor contributing to the rise of DATs is their ability to combine traditional investor choices with cryptocurrency exposure by efficiently transforming crypto holdings into equity-like instruments. The strong interest in products like MicroStrategy stock, related ETFs, and newer DATs suggests that a significant amount of capital was previously deterred by the complexities associated with native crypto investments, such as wallet management and exchange accounts. The influx of capital through more familiar traditional channels is deemed a positive development for the market. From a supply perspective, DATs differ from ETFs because investments in these vehicles tend to secure digital assets for longer durations, as they operate similarly to closed-end funds with minimal probability of selling the underlying coins. In contrast, assets held by ETFs may change more easily as investors buy and sell shares. This structural difference may positively impact asset prices, both by increasing treasury Bitcoin holdings through DAT purchases and by reducing downward pressure from sales. Pantera Capital Invests In Twenty One Capital, DeFi Advancement Corp, And Sharplink, Advancing Its Digital Asset Treasury Strategy Pantera Capital holds positions in several DAT companies, with one of the most prominent being Twenty One Capital, led by Bitcoin advocate Jack Mallers. This company aims to replicate the MicroStrategy approach and is supported by noteworthy industry entities including Tether, Softbank, and Cantor Fitzgerald. Twenty One Capital has reached a scale sufficient to offer a broad range of capital market instruments while maintaining a relatively smaller market capitalization, which may enable it to grow Bitcoin per share (BPS) more rapidly than MicroStrategy and potentially justify a higher valuation premium. Pantera was the largest investor in their private investment in public equity (PIPE) offering. Pantera also spearheaded the investment in DeFi Advancement Corp, which played a crucial role in initiating the DAT trend within the United States. Under the leadership of CEO Joseph Onorati and CIO Parker White, DeFi Advancement Corp applies the MicroStrategy model to the Solana community. Solana offers an engaging alternative to Bitcoin due to several factors: its earlier stage of development provides potentially higher upside; its greater volatility offers opportunities to capitalize on price fluctuations; the staking yield component supports growth in Solana per share; and there is comparatively less public market exposure, with no publicly traded miners or sector ETFs currently available. More recently, Pantera invested in Sharplink Gaming, the first Ethereum-focused digital asset treasury company in the United States. SBET is supported by Consensys, a leading Ethereum software firm with which Pantera has maintained a longstanding relationship covering over ten years. Pantera’s involvement in these companies, and other endeavors, combined with their positive reception in the market, has helped stimulate interest in additional companies following the DAT model, many of which Pantera continues to actively evaluate.