Pantera Capital Returns Soar on 5-Year Crypto Investments

Crypto-oriented investment firm Pantera Capital Management has generated returns of over 10,000%, since its inception five years ago.

Crypto-oriented investment firm Pantera Capital Management has generated returns of over 10,000%, since its inception five years ago.

The San Francisco-based company revealed the results in a Medium post on Friday. The co-chief investment officers Joey Krug and Dan Morehead, who is also CEO, said:

“The Fund’s lifetime return is 10,136.15% net of fees and expenses.”

To illustrate the logic behind Pantera’s business decisions and their bullish stance on the crypto market, the executives shared copies of two internal emails composed shortly after the company’s launch.

The first email, written in August 2013 when BTC was changing hands at just $104, predicts that the price of the original cryptocurrency will one day reach $5,000, arguing that “Bitcoin dominates cash, electronic fiat money, gold, bearer bonds, large stone discs, etc. It can do all of the things that each of those can. It’s the first global currency since gold. It’s the first borderless payment system ever.”

Three months later, Bitcoin was trading at $253. At the time, Morehead compared crypto investments to purchasing Microsoft shares early into the company’s existence.

“In my opinion, it’s like deciding whether to buy Microsoft back in the day at $0.20 a share. It was hard to do when the stock was just at $0.10. In the fullness of time…clearly a great trade. I believe bitcoin right now is just like that. The world’s first global currency since gold and the world’s only borderless payments system (frictionless to boot) at a market cap of $3bn? Now that Silk Road is gone, a new wave of sophisticated investors are entering,” Morehead said in the second email.

Bullish BTC price projection

Pantera’s post further featured a Bitcoin (BTC) price chart, tracking the coin’s movements since July 2010. Showing “very consistent exponential growth”, the historical trend line served to support the company’s optimistic projection that BTC will reach $21,000 by the end of this year, and $67,500 by 2019.

After reaching a record high of nearly $20,000 in December 2017, Bitcoin dropped to just shy of $6,000 in February and remained subdued in the first half of the year. Currently, however, Bitcoin is trading at nearly $8,200, marking an over 40% increase in the past month.

In mid-April, Pantera announced that its primary fund had lost about half of its value in March, after the steep downtrend in Bitcoin’s price. Despite the loss, Pantera remained bullish on the long-term future of crypto, with Morehead saying in an interview with Bloomberg in April that crypto market cap could hit $40 trillion within ten years.

Pantera currently has about $800 million in assets under management. Since its inception, the firm has invested in a number of leading cryptocurrencies and distributed ledger technology companies, with its portfolio including Bitstamp, Polychain Capital, Korbit, 0x, and Zcash. Some of the firm's recent investments include sharing economy startup Origin and “stablecoin” startup Basis.