Cosmo Jiang, General Partner and Portfolio Manager for Liquid Strategies at Pantera Capital, delves into the rising trend of crypto treasury companies. He discusses why firms are flocking to these structures for crypto exposure and the implications of high-profile investments like Trump Media’s massive Bitcoin purchase. Jiang also explores the growing popularity of Solana over Ethereum and the unique challenges faced by treasury companies, raising questions about their safety and the risks they pose to investors.
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insights INSIGHT
Rise of Crypto Treasury Companies
Crypto treasury companies are surging due to historical success and strong equity market appetite.
Regulatory clarity and investor demand fuel this rapid growth trend in crypto exposure vehicles.
insights INSIGHT
Structures of Treasury Companies
These companies primarily use SPAC mergers or public shell companies to access capital markets.
Raising capital occurs via PIPE equity or convertible debt, each with distinct risk-reward profiles.
volunteer_activism ADVICE
Choose Investment Type Carefully
Understand that PIPE investments offer full equity risk and reward, while convertible notes offer downside protection but capped upside.
Choose investment type based on your risk tolerance and existing crypto exposure.
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Public crypto treasury companies are in the news right now.
Just this week, Sharplink Gaming announced a $425 million raise to create an Ethereum treasury vehicle, backed by Consensys. Meanwhile, Trump Media said it will buy $2.5 billion worth of bitcoin. And in a headline grab, GameStop revealed a $500 million Bitcoin purchase. There’s even a newly launched XRP treasury company backed by Saudi royal capital.
But why are these vehicles suddenly the structure of choice for accessing crypto exposure? What kinds of assets are best suited for them? And are they safe or a ticking time bomb?
Pantera Capital’s Cosmo Jiang joins Unchained to unpack:
The structures and strategies behind these companies
Why Solana is appearing more than Ethereum (and what that says)
How XRP’s brand power could matter more than its adoption
The risks these vehicles pose to investors and to markets
Visit our website for breaking news, analysis, op-eds, articles to learn about crypto, and much more: unchainedcrypto.com