Cryptocurrency investment fund Pantera Capital reported a return of more than 10,000 percent over its 5 years of operation.
Pantera Capital CEO Dan Morehead and Co-Chief Investment Officer Joey Krug published an open letter on July 27 in honor of Pantera’s 5 year anniversary, in which they claimed that “the Fund’s [Pantera Capital] lifetime return is 10,136.15% net of fees and expenses.”
In the letter, Morehead and Krug included two emails sent out by the fund in 2013 outlining the “original logic” behind their cryptocurrency investments, whilst stating that it remains “equally compelling” today.
In August 2013, when 1 BTC was trading for $104, Morehead predicted that bitcoin would either trade for zero or $5,000. “I think it’s north of 50% chance that the world adopts a global currency/payment system in which free cryptography replaces the very expensive “trust” charged by banks/VISA-MasterCard/Western Union/PayPal/etc.”
“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."
Then, in November 2013, when Bitcoin traded for $253, Morehead repeated his convictions that Bitcoin was going to the moon.
"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?”
In the letter, Morehead made some big predictions for Bitcoin in the year ahead. Taking the log scale of the historic BTC price and plotting out the trend line, Morehead revealed that a BTC price of $21,000 by the end of 2018 and $67,500 by the end of 2019 seem “eminently reasonable” to him.
Although Pantera is still committed to its original investment strategy, they are expanding their focus to include investments in decentralized applications that address current blockchain problem areas, “particularly scalability and price volatility.” Pantera participated in a $45 million funding round for Oasis Labs, and committed multimillion dollar investments in Augur, Origin Protocol, and OpenToken.