The Driving Forces Behind the Listed Company's Encryption Asset Reserve Strategy

In recent years, an increasing number of publicly listed companies have incorporated encryption assets into their balance sheets. From a certain technology company being the first to invest in Bitcoin, to a certain media group raising $2.5 billion to build a Bitcoin treasury, and to several traditional industrial and technology giants experimenting on a small scale with stablecoins or Ethereum strategic reserves. According to data platforms, as of July 17, 154 publicly listed companies have adopted Bitcoin strategic reserves; additionally, a report released by a research institution at the end of June this year pointed out that publicly listed companies have cumulatively invested up to $76 billion in encryption assets.

In addition to the government's encryption-friendly policies and the demonstration effect of certain companies, behind this wave is also the encryption venture capital and Web3 funds focused on institutional-level digital asset layouts. They provide listed companies with comprehensive solutions for cryptocurrency purchases, tokenized equity, stablecoin settlements, and on-chain treasury management through leading PIPE (Private Investment in Public Equity), convertible bonds, reverse mergers, and other means.

The leading institutions driving the encryption of listed companies have expanded from a few well-known investment firms in the early days to include several emerging encryption investment institutions, with an increasing number of encryption VCs joining this trend recently.

Main Participants and Their Strategies

Pantera Capital

Pantera has invested in multiple DAT (Digital Asset Treasury) companies, the most notable of which is a financial services firm led by a well-known Bitcoin supporter. Pantera invested the most in its PIPE funding round. The company is trying to emulate the strategy of a certain technology company and has the support of three industry giants. Pantera noted that this company's size is just right to utilize all capital market tools, while having a smaller market capitalization, thus being able to flexibly achieve BPS growth at a faster pace and trade at a higher premium.

In addition, Pantera also led the investment in another NASDAQ-listed company that has sparked a DAT trend in the United States. The company is drawing on the strategies of a certain technology company but applying them to a specific blockchain. Pantera believes that this blockchain is an interesting alternative to Bitcoin for several reasons: due to its shorter maturation period, it may have greater potential for upward movement; its volatility is higher than Bitcoin's, which means that leveraging this volatility can achieve higher returns; its staking yield can promote the growth of each token per share; and due to the current limited alternatives available, there is more undeveloped demand.

In addition, Pantera has also invested in the first Ethereum digital asset financial company in the United States. This company is led by an important software company in the Ethereum ecosystem to launch the ETH treasury strategy, and Pantera has collaborated with its team for over ten years.

Other major participants

A well-known digital asset investment company not only serves as the financial advisor for a media group's $2.5 billion Bitcoin treasury financing but is also one of the lead underwriters, designing the financing structure and committing to provide liquidity support.

Another Web3 investment giant announced that it has signed a non-binding memorandum of understanding with a publicly listed restaurant company, planning to invest up to $100 million in Bitcoin into its Bitcoin treasury revenue strategy. The company's co-founder will also join the other party's "Bitcoin Vision Committee" to provide strategic guidance for its treasury management and revenue optimization.

A certain Asian venture capital firm has launched a $150 million fund aimed at replicating a certain technology company's Bitcoin treasury management model for publicly listed companies in Asia. The fund focuses on publicly listed companies in markets such as Japan, Hong Kong, Thailand, Taiwan, and South Korea.

Multiple encryption investment institutions have also participated in the financing of encryption assets for traditional industry listed companies such as fitness equipment companies and consumer goods enterprises. These companies have successively raised funds through methods such as issuing convertible bonds or private placements to purchase Bitcoin, Ethereum, or other encryption assets as a strategic allocation in their balance sheets.

Conclusion

As more and more publicly listed companies begin to explore encryption asset reserve strategies, professional encryption investment institutions are playing a key role. They not only provide financial support but also offer expertise, strategic guidance, and business development opportunities to these companies. This trend reflects the gradual integration of traditional capital markets with the encryption economy and also indicates that digital assets may play a more important role in corporate financial management.