The Driving Force Behind the Public Company's Encryption Asset Strategy: The Role and Layout of Crypto Venture Capital

In recent years, encryption assets have been increasingly included in the balance sheets of listed companies as strategic reserves. From a certain technology company taking the lead in heavily investing in Bitcoin, to a certain media group raising $2.5 billion to build a Bitcoin treasury, to several traditional industrial and technology giants experimenting on a small scale with stablecoins or Ethereum reserves. According to a certain data platform, as of July 17, 154 listed companies have adopted Bitcoin as a strategic reserve; furthermore, a report released by a certain research institution at the end of June this year pointed out that listed companies have cumulatively invested as much as $76 billion in encryption assets.

In addition to changes in the policy environment and the demonstration effects of certain companies, an important role behind this wave is played by a group of encryption-focused venture capital and Web3 funds that concentrate 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 methods.

The main institutions driving the encryption of publicly listed companies have expanded from a few well-known investment institutions in the early stages to include many emerging encryption funds and traditional financial institutions. Recently, more and more encryption VCs have begun to join this team.

Main Participating Institutions and Their Strategies

Pantera Capital

Pantera has invested in multiple Digital Asset Treasury (DAT) companies, the most notable of which is a financial services company led by a well-known Bitcoin advocate. Pantera invested the most funds in this company's PIPE financing round. The company is attempting 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 flexibly achieve faster growth in book value per share.

In addition, Pantera has also led another company that is driving the DAT trend. This company is drawing on the strategies of a certain technology company, but applying them to Solana. Pantera believes that Solana has multiple advantages as an alternative to BTC, including the potential for greater upside, higher volatility that can lead to higher returns, and staking rewards that can promote the growth of each SOL share.

Pantera also invested in the first Ethereum digital asset finance company in the United States. The company launched an ETH treasury strategy by important participants in the Ethereum ecosystem, and Pantera has collaborated with its team for many years.

Other Major Participants

Many well-known encryption investment institutions are also actively participating in the cryptocurrency asset strategies of listed companies. They provide financing, consulting, and strategic support to companies in various ways, promoting traditional enterprises to enter the encryption field. These institutions include venture capital focusing on the Asian market, large encryption financial companies providing comprehensive digital asset services, and funds focusing on specific public chain ecosystems, among others.

Some traditional financial institutions and emerging encryption funds have also begun to venture into this field, providing listed companies with financing and management services for encryption assets. Their involvement further expands the channels for listed companies to enter the encryption field.

Typical Cases

Recently, there have been several notable cases of publicly listed companies raising funds through encryption assets:

1. A fitness equipment company announced the signing of a token treasury financing framework with a total scale of up to $500 million, with the first $55 million jointly invested by two encryption investment institutions. The funds will be used to purchase tokens for specific projects, as on-chain allocated assets in its balance sheet.

2. A consumer goods company issued convertible bonds worth $150 million, using locked Solana tokens as collateral. This financing significantly increased the company's on-chain treasury size.

3. A newly established Bitcoin financial reserve company has completed a $750 million financing, setting a record for the scale of initial financing among similar companies. The company plans to focus on acquiring Bitcoin and developing profitable financial products based on its holdings.

These cases involve a variety of encryption assets and financing methods, reflecting the diversity of listed companies' encryption strategies and the key role played by encryption investment institutions in them.

Conclusion

As more and more publicly traded companies incorporate encryption assets into their strategic planning, encryption venture capital and Web3 funds are playing an increasingly important role. They not only provide financial support but also offer expertise and strategic guidance for traditional enterprises entering the encryption field. This trend is expected to continue driving the mainstreaming process of encryption assets in the traditional financial system.