Our investment theory in Digital Asset Treasury companies (abbreviated as DATs) is based on a simple assumption:
DATs can increase the net asset value per share by generating income, thereby accumulating more token holdings over time, rather than just holding spot positions.
Therefore, investing in DATs may have the potential for higher returns compared to directly holding tokens or holding tokens through exchange-traded funds (ETFs).
Pantera has invested over $300 million in Digital Asset Treasuries (DATs) across various tokens and regions. These DATs leverage their unique advantages to expand their digital asset holdings through strategic operations aimed at increasing value per share. Below is a brief overview of our DAT portfolio coverage.
BitMine Immersion (BMNR) is the first investment of the Pantera DAT Fund, showcasing a company model with clear strategic planning and execution capability. Fundstrat's chairman Tom Lee elaborated on BitMine's long-term vision – acquiring 5% of the total ETH supply, a goal referred to as '5% Alchemy'. We believe it is very meaningful to interpret how an efficiently operating Digital Asset Treasury (DAT) can create value through the case of BMNR.
BitMine (BMNR) Case Study
Since BitMine launched its fund management strategy, it has become the largest ETH fund management institution in the world and the third largest DAT (behind Strategy and XXI). As of August 10, 2025, BMNR holds a total of 1,150,263 ETH, valued at $4.9 billion. In addition, BMNR is also ranked 25th in liquidity among stocks in the United States, with an average daily trading volume of $2.2 billion (based on the five-day average trading volume as of August 8, 2025).
Ethereum case
The most important factor for the success of DAT lies in the long-term investment value of its underlying tokens. BitMine's DAT strategy is based on a core argument: as Wall Street shifts on-chain, Ethereum will become one of the biggest macro trends of the next decade. As we wrote in last month's article, "The Great Onchain Migration" is underway, and the importance of tokenization innovations and stablecoins is increasingly prominent.
Currently, there are 25 billion dollars worth of real-world assets existing on public blockchains—additionally, there are 260 billion dollars in stablecoins, which have collectively become the 17th largest holder of U.S. Treasury securities.
Stablecoins have become the ChatGPT story in the crypto space.
– Tom Lee, Chairman of BitMine, Pantera DAT Call, July 2, 2025
Most of these activities occur on Ethereum, which positions ETH to benefit from the growing demand for block space. As financial institutions increasingly rely on the security of Ethereum to support their operations, they will be incentivized to participate in Ethereum's Proof-of-Stake network—further driving the demand for additional ETH.
Earnings Per Share ("EPS") of ETH growth
After establishing the investment value of the underlying token, the core of the Digital Asset Treasury (DAT) business model lies in maximizing the growth of the number of tokens per share. The following are the main methods for increasing the number of tokens per share:
Issuing shares at a premium to the net asset value ("NAV") per token.
Issue convertible bonds and other equity-linked securities to capitalize on the volatility of stocks and underlying tokens.
Obtain more tokens through staking rewards, DeFi yields, and other operational income. It is important to note that this is an additional advantage unique to ETH and other smart contract treasury, which early Bitcoin treasuries (such as Strategy) do not possess.
Acquire other digital asset treasuries close to or below net asset value (NAV) transactions.
In this regard, BitMine has seen a remarkable growth in earnings per share (coincidentally also referred to as "EPS") of ETH within the first month since launching its ETH treasury strategy.
Deep Tide Note: Earnings Per Share, EPS, refers to the net profit earned per share of common stock, which far exceeds other digital asset treasury (DAT). In comparison, the amount of ETH accumulated by BitMine in the first month has surpassed the total accumulated by Strategy (formerly MicroStrategy) in the first six months of executing a similar strategy.
BitMine mainly increases the number of shares by issuing stock and generating staking rewards. We expect that BitMine is likely to expand its tool menu in the near future, issuing convertible debt and other financial instruments.
Source: BitMine Company presentation, July 27, 2025
Value Creation Action
The price of Digital Asset Financial Vault (DAT) can be broken down into the product of the following three parts: (a) the number of tokens per share, (b) the price of the underlying token, and (c) the net asset value multiple ("mNAV").
As of the end of June, the stock price of BMNR was $4.27 per share, approximately 1.1 times its net asset value (NAV) of $4 per share after the initial DAT financing. Just over a month later, the stock closed at $51, about 1.7 times its estimated net asset value (NAV) of $30 per share.
This means that the stock price has increased by 1,100% in over a month, where: (a) the earnings per share (EPS) increased by approximately 330%, contributing about 60% of the increase; (b) the ETH price rose from $2,500 to $4,300, contributing about 20% of the increase; (c) the mNAV expanded to 1.7 times, contributing about 20% of the increase.
This means that the significant rise in the BMNR stock price is primarily driven by the increase in its earnings per share of ETH (EPS). This is the core driver that is controllable by management and the fundamental difference between Digital Asset Treasury (DAT) and simply holding spot assets.
The third factor we have not yet explored in depth is the multiple of net asset value (mNAV). Naturally, one might ask: why would someone buy the net asset value (NAV) of a Digital Asset Treasury (DAT) at a premium?
Here, it can be likened to financial businesses based on balance sheets, including banks. Banks generate income through assets, and investors will give a valuation premium to those banks that can continuously create returns exceeding the cost of capital. For example, the highest quality banks typically trade at a premium above their net asset value (NAV) or book value, such as JPMorgan Chase (JPM) trading at over 2 times its valuation.
Similarly, if investors believe that a certain DAT can continue to grow its net asset value (NAV) per share, they may be willing to value that DAT at a premium. We believe that BMNR's monthly growth of approximately 640% in net asset value (NAV) per share is sufficient to justify its mNAV premium.
Whether BitMine can continue to execute its strategy will be verified over time, and it will inevitably face challenges in the process. BitMine's management team and its performance to date have attracted heavyweight supporters from the traditional financial sector, including Stan Druckenmiller, Bill Miller, and ARK Invest. We expect that the growth story of the highest quality DAT will be favored by more institutional investors, just like Strategy.
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Pantera: BitMine's ETH Alchemy
Written by: Cosmo Jiang, Erik Lowe
Compiled by: ShenChao TechFlow
Our investment theory in Digital Asset Treasury companies (abbreviated as DATs) is based on a simple assumption:
DATs can increase the net asset value per share by generating income, thereby accumulating more token holdings over time, rather than just holding spot positions.
Therefore, investing in DATs may have the potential for higher returns compared to directly holding tokens or holding tokens through exchange-traded funds (ETFs).
Pantera has invested over $300 million in Digital Asset Treasuries (DATs) across various tokens and regions. These DATs leverage their unique advantages to expand their digital asset holdings through strategic operations aimed at increasing value per share. Below is a brief overview of our DAT portfolio coverage.
BitMine Immersion (BMNR) is the first investment of the Pantera DAT Fund, showcasing a company model with clear strategic planning and execution capability. Fundstrat's chairman Tom Lee elaborated on BitMine's long-term vision – acquiring 5% of the total ETH supply, a goal referred to as '5% Alchemy'. We believe it is very meaningful to interpret how an efficiently operating Digital Asset Treasury (DAT) can create value through the case of BMNR.
BitMine (BMNR) Case Study
Since BitMine launched its fund management strategy, it has become the largest ETH fund management institution in the world and the third largest DAT (behind Strategy and XXI). As of August 10, 2025, BMNR holds a total of 1,150,263 ETH, valued at $4.9 billion. In addition, BMNR is also ranked 25th in liquidity among stocks in the United States, with an average daily trading volume of $2.2 billion (based on the five-day average trading volume as of August 8, 2025).
Ethereum case
The most important factor for the success of DAT lies in the long-term investment value of its underlying tokens. BitMine's DAT strategy is based on a core argument: as Wall Street shifts on-chain, Ethereum will become one of the biggest macro trends of the next decade. As we wrote in last month's article, "The Great Onchain Migration" is underway, and the importance of tokenization innovations and stablecoins is increasingly prominent.
Currently, there are 25 billion dollars worth of real-world assets existing on public blockchains—additionally, there are 260 billion dollars in stablecoins, which have collectively become the 17th largest holder of U.S. Treasury securities.
Stablecoins have become the ChatGPT story in the crypto space.
– Tom Lee, Chairman of BitMine, Pantera DAT Call, July 2, 2025
Most of these activities occur on Ethereum, which positions ETH to benefit from the growing demand for block space. As financial institutions increasingly rely on the security of Ethereum to support their operations, they will be incentivized to participate in Ethereum's Proof-of-Stake network—further driving the demand for additional ETH.
Earnings Per Share ("EPS") of ETH growth
After establishing the investment value of the underlying token, the core of the Digital Asset Treasury (DAT) business model lies in maximizing the growth of the number of tokens per share. The following are the main methods for increasing the number of tokens per share:
Issuing shares at a premium to the net asset value ("NAV") per token.
Issue convertible bonds and other equity-linked securities to capitalize on the volatility of stocks and underlying tokens.
Obtain more tokens through staking rewards, DeFi yields, and other operational income. It is important to note that this is an additional advantage unique to ETH and other smart contract treasury, which early Bitcoin treasuries (such as Strategy) do not possess.
Acquire other digital asset treasuries close to or below net asset value (NAV) transactions.
In this regard, BitMine has seen a remarkable growth in earnings per share (coincidentally also referred to as "EPS") of ETH within the first month since launching its ETH treasury strategy.
Deep Tide Note: Earnings Per Share, EPS, refers to the net profit earned per share of common stock, which far exceeds other digital asset treasury (DAT). In comparison, the amount of ETH accumulated by BitMine in the first month has surpassed the total accumulated by Strategy (formerly MicroStrategy) in the first six months of executing a similar strategy.
BitMine mainly increases the number of shares by issuing stock and generating staking rewards. We expect that BitMine is likely to expand its tool menu in the near future, issuing convertible debt and other financial instruments.
Source: BitMine Company presentation, July 27, 2025
Value Creation Action
The price of Digital Asset Financial Vault (DAT) can be broken down into the product of the following three parts: (a) the number of tokens per share, (b) the price of the underlying token, and (c) the net asset value multiple ("mNAV").
As of the end of June, the stock price of BMNR was $4.27 per share, approximately 1.1 times its net asset value (NAV) of $4 per share after the initial DAT financing. Just over a month later, the stock closed at $51, about 1.7 times its estimated net asset value (NAV) of $30 per share.
This means that the stock price has increased by 1,100% in over a month, where: (a) the earnings per share (EPS) increased by approximately 330%, contributing about 60% of the increase; (b) the ETH price rose from $2,500 to $4,300, contributing about 20% of the increase; (c) the mNAV expanded to 1.7 times, contributing about 20% of the increase.
This means that the significant rise in the BMNR stock price is primarily driven by the increase in its earnings per share of ETH (EPS). This is the core driver that is controllable by management and the fundamental difference between Digital Asset Treasury (DAT) and simply holding spot assets.
The third factor we have not yet explored in depth is the multiple of net asset value (mNAV). Naturally, one might ask: why would someone buy the net asset value (NAV) of a Digital Asset Treasury (DAT) at a premium?
Here, it can be likened to financial businesses based on balance sheets, including banks. Banks generate income through assets, and investors will give a valuation premium to those banks that can continuously create returns exceeding the cost of capital. For example, the highest quality banks typically trade at a premium above their net asset value (NAV) or book value, such as JPMorgan Chase (JPM) trading at over 2 times its valuation.
Similarly, if investors believe that a certain DAT can continue to grow its net asset value (NAV) per share, they may be willing to value that DAT at a premium. We believe that BMNR's monthly growth of approximately 640% in net asset value (NAV) per share is sufficient to justify its mNAV premium.
Whether BitMine can continue to execute its strategy will be verified over time, and it will inevitably face challenges in the process. BitMine's management team and its performance to date have attracted heavyweight supporters from the traditional financial sector, including Stan Druckenmiller, Bill Miller, and ARK Invest. We expect that the growth story of the highest quality DAT will be favored by more institutional investors, just like Strategy.