DATs Value Decoding: BitMine holds 1.15 million ETH, with a "alchemy" of 640% rise per share.

Source: Pantera Capital

整理&编译： Janna ， ChainCatcher

Original Title: Pantera Capital's In-Depth Analysis: The Value Creation Logic of Digital Asset Treasury (DATs)

This article is written by Cosmo Jiang, general partner and portfolio manager at Pantera Capital. The investment in digital assets has long surpassed the stage of merely holding coins and waiting for appreciation. Digital Asset Treasuries (DATs), with their unique logic of "enhancing net asset value per share and earning more underlying tokens," have become the hot commodity that institutions are vying for. Pantera has heavily invested 300 million in DATs, and BitMine has gained attention with its impressive ETH reserves. This article will break down the value code of DATs, revealing the deeper reasons why leading institutions in the industry are choosing this track, and understanding the new trends in digital asset investment.

(1) Digital Asset Treasury (DATs) Investment Logic

Our investment logic for DATs is based on a simple premise: DATs can enhance the net asset value per share by generating returns, ultimately achieving a greater underlying token holding than simply holding spot assets. Therefore, holding DATs may have higher return potential than directly holding tokens or holding tokens through ETFs. Pantera has deployed over $300 million globally into DATs, covering a variety of tokens. These DATs are leveraging their unique advantages to strategically increase digital asset holdings and achieve per-share value growth. Below is an overview of our DATs portfolio.

BitMine Immersion is an innovative company focused on blockchain technology and the financialization of digital assets, with a NYSE ticker of BMNR. As the first investment of the Pantera DAT fund, BitMine demonstrates a clear strategic path and outstanding execution capability. Tom Lee, the chairman of BitMine, proposed BitMine's long-term vision: to acquire 5% of the global ETH supply - the "5% Alchemy Plan." We believe that a deep analysis of BitMine's value creation process can provide a typical case for understanding the operational model of high-execution DATs.

Since the launch of the auto-reserve strategy, BitMine has become the largest ETH reserve entity in the world and the third largest DAT (only behind Strategy and XXI), holding 1,150,263 ETH, valued at 4.9 billion USD, as of August 10, 2025. At the same time, BitMine is the 25th highest liquidity stock in the United States, with an average daily trading volume of 2.2 billion USD over the five days ending August 8, 2025.

(2) The Strategic Value of Ethereum

The success of DATs lies in the long-term investment value of the underlying tokens. BitMine's DAT strategy is based on the following judgment: with the comprehensive on-chain transformation of Wall Street, Ethereum will become one of the most important macro trends in the next decade. As we mentioned last month, the "great on-chain migration" is underway — the importance of tokenization innovation and stablecoins is increasing day by day. Currently, $25 billion of real assets have been put on-chain, along with $260 billion in stablecoins (equivalent to the 17th largest holder of U.S. Treasury bonds globally), driving this process forward. As BitMine Chairman Tom Lee stated in early July 2025, "Stablecoins have become a ChatGPT-level phenomenon in the crypto space." These activities mainly occur on the Ethereum network, allowing ETH to directly benefit from the growing demand for block space. As financial institutions increasingly rely on Ethereum's security to support their businesses, they will be more motivated to participate in proof-of-stake networks, further driving up ETH demand.

(3) Actual Evidence of DAT Value Creation

After establishing the investment value of the underlying token, the business model of DATs focuses on maximizing the number of tokens held per share. The main approaches include:

1. Premium issuance of stocks: Issuing stocks at a price higher than the net asset value (NAV) per token.

2. Issuing convertible bonds: Monetizing the fluctuating value of stocks and tokens through equity-linked securities.

3. Reinvestment of Earnings: Accumulate tokens through staking rewards, DeFi earnings, and other operational income (this is a unique advantage of smart contract tokens like ETH and other DATs, which traditional Bitcoin DATs such as Strategy do not possess)

4. Acquiring Undervalued Assets: Acquiring DATs that are trading close to or below NAV

BitMine achieved an astonishing growth in per share ETH in the first month of launching its ETH reserve strategy, with a growth rate far exceeding its peers. The amount of ETH accumulated in the first month has already surpassed the total of the previous six months' Strategy. BitMine primarily achieves growth through stock issuance and staking rewards, and it is expected to soon expand into financing tools such as convertible bonds.

Source: BitMine, July 27, 2025

The price of DAT can be broken down into the product of three elements: (a) the number of tokens per share (b) token price (c) NAV multiplier (mNAV). At the end of June, BitMine's stock price was $4.27 per share, approximately 1.1 times the initial NAV of $4 per share after DAT's financing. A little over a month later, the stock price soared to $51 per share, about 1.7 times the estimated NAV of $30 per share. Of the 1100% increase during this month, approximately 60% came from EPS growth (330%), 20% from the rise in ETH price (from $2500 to $4300), and 20% from mNAV expansion (1.7 times). This indicates that the core driver of BitMine's stock price increase is the growth in the amount of ETH held per share (EPS), which is the controllable core engine by management and is the key differentiator for DATs compared to merely holding spot.

The third factor we have not yet explored is the NAV multiplier (mNAV). Naturally, one might ask: why would someone be willing to purchase DATs at a price higher than the net asset value (NAV)? This can be understood by drawing an analogy to financial institutions that operate based on their balance sheets, such as banks: banks generate returns through their assets, and investors are willing to pay a valuation premium for those banks that are believed to consistently generate returns above their cost of capital. High-quality banks often trade at prices above their net asset value (or book value); for example, JPMorgan Chase (JPM) has a price-to-book ratio exceeding 2 times. Similarly, if investors believe that a certain DAT can continuously enhance its net asset value per share, they may be willing to value it at a price above NAV. We believe that BitMine's approximately 640% month-over-month increase in net asset value per share is sufficient to support its NAV multiplier premium. Whether BitMine can continue to execute its strategy remains to be seen, and it will inevitably face challenges along the way. However, its management team and performance record to date have attracted support from traditional financial giants such as Stan Druckenmiller, Bill Miller, and ARK Invest. We expect that, as evidenced by the development history of Strategy, the growth potential of high-quality DATs will gain recognition from more institutional investors.