The Driving Forces Behind the Public Company's Encryption Reserve Strategy

In recent years, an increasing number of 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 testing stablecoins or Ethereum as strategic reserves on a small scale. According to a certain data platform, as of July 17, 154 listed companies have adopted Bitcoin as a strategic reserve; additionally, a report released by a certain research institution at the end of June this year indicated that listed companies have cumulatively invested as much as $76 billion in encryption assets.

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

The main 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 crypto VCs joining this trend recently.

Main Participants and Their Strategies

Pantera Capital

Pantera has invested in several DAT (Digital Asset Treasury) companies, the most notable of which is a financial services firm led by a well-known Bitcoin supporter. Pantera invested a significant amount of capital in its PIPE financing round. The company is trying to emulate the strategy of a certain technology company and has received support from several industry giants. Pantera believes that this company's size is just right to leverage all capital market tools while having a smaller market capitalization, allowing it to achieve BPS growth at a faster pace and trade at a higher premium.

In addition, Pantera has also led another Nasdaq-listed company that is drawing on the strategies of a certain technology company, but applying them to a certain public blockchain. Pantera believes that this public blockchain is an interesting alternative to Bitcoin for several reasons: the potential for greater upside, higher volatility, staking rewards that can promote growth in per-token value, and the untapped demand potential.

Pantera also invested in the first Ethereum digital asset finance company in the United States. The company is spearheaded by a software firm led by one of the co-founders of Ethereum, launching the ETH treasury strategy.

Other major participants

A certain 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. The company has previously assisted several non-encryption native enterprises in conducting encryption payments and treasury experiments, and has acted as an advisor in several SPAC mergers.

Another well-known Web3 investment firm has announced that it has signed a memorandum of understanding with a certain food and packaging company, committing to invest up to $100 million in Bitcoin into its Bitcoin treasury yield strategy. The co-founder of the investment firm will also join the food company's "Bitcoin Vision Committee" to provide strategic guidance for its treasury management and yield optimization.

A certain Asian venture capital firm has launched a $150 million fund aimed at replicating a technology company's Bitcoin treasury management model for publicly listed companies in Asia. The firm has also entered the public market and rebranded itself through a strategic merger with a certain Hong Kong listed company.

Multiple encryption investment institutions participated in a $500 million "FET token treasury" financing framework for a fitness equipment company, as well as large-scale private placements for other listed companies. These transactions involve various encryption assets, including Bitcoin, Ethereum, and other public chain tokens.

Trends and Impacts

As more and more publicly listed companies incorporate encryption assets into their balance sheets, encryption venture capital and Web3 funds play a key role in this process. They not only provide financial support but also offer strategic guidance and expertise to these companies. This trend is changing the boundaries between traditional finance and the encryption economy, providing new opportunities for institutional investors while also paving the way for the mainstream adoption of encryption assets.

However, this trend also brings new challenges and risks. Public companies need to balance the demands of innovation and compliance while coping with the high volatility of the encryption market. Regulatory agencies will also closely monitor this development and may introduce new regulations to manage such investment activities.

In the future, we may see more publicly listed companies adopting encryption reserve strategies, while crypto venture capital and Web3 funds will continue to play an important role in this field. This will not only affect the financial strategies of companies but may also drive broader financial innovation and the application of blockchain technology.