Latest news with #PanteraCapital
Yahoo
6 days ago
- Business
- Yahoo
Companies want Bitcoin treasuries. They need to consider these six factors
Crypto treasury companies are booming. More than 200 public companies now hold Bitcoin or Ethereum on their balance sheets, with dozens more launching weekly. From US President Donald Trump to an online casino marketing company, firms are beefing up their balance sheets by holding crypto as a reserve. To some, these so-called Digital Asset Treasuries are no more than overleveraged crypto plays wearing corporate suits. But for Tom Lee, Wall Street strategist and crypto bulwark, there's more than meets the eye. There are five distinct advantages to a crypto treasury company, Lee said in an interview with investment firm Pantera Capital, although it all comes down to a sixth: 'management.' Here are the six advantages to launching a crypto treasury company, according to Lee. Capital markets For Lee, capital markets are the first driver. When a company's stock trades above the value of its crypto holdings, it can issue new shares and use the proceeds to buy more tokens — effectively growing its assets without raising debt or diluting per-share value. 'They're actually growing your holdings by selling stock,' said Lee. It's 'a really strange concept, it's accretion.' So, if investors are willing to overpay for a company's crypto exposure, the company can keep stacking at a discount. Cost of money The fact that an exchange-traded fund holder has a cost of money is the second driver, according to Lee. That's because when a retail investor wants to borrow money for a crypto position, they face interest rates of up to 10%. But corporations have access to far cheaper capital — and nifty financial instruments like bonds or derivatives to drive those costs down even further. 'MicroStrategy is borrowing money at 0%,' said Lee. It's like taking out a zero-interest loan and earning yield on the borrowed funds. Strategy now holds upwards of $73 billion in Bitcoin. Issuing equity The third advantage is that a public company can issue equity, said Lee, and use that equity as a strategic asset. 'Imagine there are two Digital Asset Treasury companies that both hold Ethereum,' he said. 'One trades at net asset value, the other at a premium. The premium company can acquire the other using its stock, and suddenly grow its ETH per share again.' In other words, when a company's shares are trading well above the value of its crypto holdings, those shares can become a powerful acquisition tool. Companies scoop up cheaper rivals, increase their onchain reserves, and drive more value to shareholders, all without spending a dime in cash. Operating leverage Another major advantage of crypto treasury companies, especially those focused on Ethereum, is that they're not limited to passively holding coins — they can build real businesses around their holdings. 'They can actually build an operating company that grows the ETH per share,' Lee said. That means an Ethereum treasury firm could develop products, infrastructure, or services directly within the Ethereum ecosystem. All of this activity can generate revenue or earn more ETH, compounding the company's onchain exposure and potentially boosting shareholder returns. Onchain yield Ethereum-based firms can stake their ETH and earn yield on top of capital appreciation — a dynamic that simply doesn't exist for most Bitcoin treasury companies. 'This is something unique to the non-Bitcoin treasuries,' said Cosmo Jiang, portfolio manager at Pantera Capital. 'It's a structural advantage.' Jeff Park, head of Alpha Strategies at Bitwise, has also highlighted yield as Ethereum's unique value proposition for a corporate treasury play. 'Ethereum is a useful asset,' Park said in a July 8 interview on the Wolf of All Streets podcast. 'Bitcoin stores value. But Ethereum is productive — it earns yield.' The story But the biggest factor? The narrative. 'It all comes down to whether the market believes the story,' said Lee. For investors to buy in, the managing team needs to have a clear vision on how to achieve the previous five factors, according to Lee. 'That's why Metaplanet trades where it does.' Metaplanet is a former budget hotel operator from Japan that has become one of the most aggressive Bitcoin treasury firms. Since 2024, when it pivoted, the company's market capitalisation has gone to about $6 billion from $13 million. Bitcoin trades at around $119,142. Pedro Solimano is DL News' Buenos Aires-based markets correspondent. Got at a tip? Email him at psolimano@ Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
23-07-2025
- Business
- Yahoo
This Hot SPAC Stock Is Joining the Ethereum Treasury Battle. Should You Buy Shares Now?
Dynamix Corporation (DYNX) surged nearly 17% on Monday, July 21 after announcing its merger with The Ether Machine, expected to close by the fourth quarter of 2025. The deal aims to create the largest public vehicle for institutional Ethereum (ETHUSD) exposure, trading under the ticker ETHM. The Ether Machine is led by co-founder Andrew Keys with a $645 million anchor investment. It plans to focus on yield generation through 'staking' rather than just holding Ethereum. This approach enables the company to earn dividends by contributing to Ethereum network operations, a feature that current spot Ethereum ETFs do not offer. More News from Barchart Nvidia Stock Warning: This NVDA Challenger Just Scored a Major Customer Warren Buffett Has $347.7 Billion in Cash Because Growing an 'Empire' Just to Grow Makes 'the Citizenry Poorer' Dear Microsoft Stock Fans, Mark Your Calendars for July 30 Stop Missing Market Moves: Get the FREE Barchart Brief – your midday dose of stock movers, trending sectors, and actionable trade ideas, delivered right to your inbox. Sign Up Now! 'Ether produces yield if it's properly managed,' Keys explained, emphasizing Ethereum's advantages over Bitcoin (BTCUSD) in tokenizing various assets and enabling faster transaction processing. The company joins an emerging cohort seeking to become 'the MicroStrategy of Ethereum,' including Bitmine Immersion Technologies (BMNR) and SharpLink Gaming (SBET). With backing from major crypto investors like Pantera Capital, Electric Capital, and 10T Holdings, The Ether Machine enters a hot market in which Ethereum has doubled in value over the past three months and ETFs have recently posted record weekly inflows of $2.18 billion. The Ether Machine Announces $1.6 Billion SPAC Merger The Ether Machine is led by blockchain veterans with deep Ethereum expertise. Co-Founder and Chairman Andrew Keys previously helped create the first Ethereum blockchain as a service with Microsoft (MSFT) and co-founded the Enterprise Ethereum Alliance. CEO David Merin led over $700 million in fundraising at Consensys, while CTO Tim Lowe pioneered institutional staking platforms. The team also includes DeFi expert Darius Przydzial and PayPal (PYPL) board member Jonathan Christodoro as vice chairman. The Ether Machine intends to operate as an Ethereum generation company with three core objectives: generating alpha through staking, restaking, and DeFi protocols; catalyzing the Ethereum ecosystem through partnerships and research; and building infrastructure solutions for institutions and Ethereum projects. Key highlights of the SPAC deal include: Andrew Keys' $645 million anchor investment (169,984 ETH) Over $800 million in institutional backing Expected gross proceeds exceeding $1.6 billion Launch with over 400,000 ETH on the balance sheet Unlike existing Ethereum ETFs that simply hold spot Ethereum, The Ether Machine focuses on yield generation through staking and DeFi strategies. 'We have assembled a team of 'Ethereum Avengers' to actively manage and unlock yields to levels we believe will be market-leading for investors,' Keys said. The timing capitalizes on regulatory clarity and growing institutional appetite for blockchain technology, with the company expected to set new standards for digital asset excellence. Investors should note that as with other SPAC stocks, analysts do not provide ratings or price targets on Dynamix. On the date of publication, Aditya Raghunath did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on
Yahoo
21-07-2025
- Business
- Yahoo
Ether Machine, backed by crypto giants, set to raise over $1.6 billion in Nasdaq debut
By Ateev Bhandari (Reuters) -The Ether Reserve, a new crypto venture backed by prominent crypto investors, will list on the Nasdaq through a merger with blank-check firm Dynamix Corporation and is expected to raise over $1.6 billion. The combined entity, to be named The Ether Machine, aims to launch with more than 400,000 Ether on its balance sheet, positioning it as the largest public vehicle for institutional exposure to the world's second-largest cryptocurrency. Shares of Dynamix rose nearly 28% in early trading. The deal highlights rising institutional interest in holding crypto on corporate balance sheets, with several projects announcing plans in recent months to publicly list their shares while aiming to wrap crypto assets into equity to attract traditional investors. While most corporate interest has focused on Bitcoin, Ether has surged in recent weeks, hitting a six-month high on Friday. Ether stands out for its yield-generating capability and its use in digitizing real-world assets, according to Andrew Keys, who will serve as Ether Machine's chairman. Ether holders earn returns via staking, a process that supports the operation and security of the Ethereum network. 'Bitcoin doesn't have yield and Ether does,' Keys, who previously worked with Ethereum co-founder Joseph Lubin, told Reuters in an interview. Investors in the blank-check deal, including Kraken, and Pantera Capital, are contributing more than $800 million through an upsized common stock offering. ECOSYSTEM DOMINANCE Ethereum is growing in a way that is reminiscent of how Google dominated internet search, Keys said, adding that 90% of stablecoins and other real-world tokenizations are settled on the platform. The blockchain supporting Ether can have "infinite assets created on top of it and we can have infinite functionality through smart contract usage," he added. Smart contracts are self-executing digital agreements on blockchains, eliminating intermediaries. Ether has also benefited from increased regulatory clarity around U.S. dollar-pegged stablecoins. "The largest beneficiary of the Genius Act is Ethereum because the majority of stablecoins reside on top of Ethereum," Keys said. The company will trade on the Nasdaq under the symbol "ETHM" upon deal close, which is expected in the fourth quarter of 2025.
Yahoo
21-07-2025
- Business
- Yahoo
Ether Machine to List on Nasdaq Via SPAC With $1.5B Backing
A new ether investment vehicle is set to debut on the Nasdaq with an expected 400,000 ETH ($1.53 billion) on its balance sheet. The Ether Reserve will list on the Nasdaq via a merger with special purpose acquisition company (SPAC) Dynamix Corporation (DYNX). The combined entity will be named The Ether Machine and trade under the ticker ETHM, according to an announcement on Monday. DYNX shares jumped over 30% to trade at around $13.40 in pre-market trading on Monday. The Ether Machine is positioned as a public vehicle for exposure to Ether and ETH-denominated yield through seeking returns from staking, restaking and decentralized finance (DeFi). It is backed by around $645 million worth of ETH from Andrew Keys, a former executive at Ethereum infrastructure builder Consensys, who will serve as chairman of Ether Machine. The company also has over $800 million in financing from a range of high-profile backers, such as 1RoundTablepartners, Pantera Capital, Kraken and The listing couldn't come at a much better time for ether bulls, as the world's second-largest cryptocurrency climbed as much as 25% last week to break above $3,800 for the first time in 2025. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
CNBC
14-07-2025
- Business
- CNBC
Bitcoin hits new record above $123,000 as 'Crypto Week' kicks off on Capitol Hill: CNBC Crypto World
On today's episode of CNBC Crypto World, bitcoin notches yet another new record, this time above $123,000. Plus, 'Crypto Week' kicks off on Capital Hill where the House of Representatives will debate a series of crypto-related bills. And, Cosmo Jiang of Pantera Capital discusses the growing trend of corporate crypto treasuries.
