PANTERA INVESTING IN BLOCKCHAIN CONFERENCE CALL SEP 2021Firm Introduction Pantera Thesis The Opportunity Agenda Why Now Investing Perspectives Market Assessment Pantera Funds Overview Why Pantera SPEAKERS Dan Morehead 2 Joey Krug g Franklin BiThe Firm PANTERA pan torra (| pantera (Italian and Spanish), panther pan era, ‘spanning eras’ Pantera Capital was founded by former Tiger Management Head of Macro Trading and CFO Dan Morohead. Pantera’s global macro strategy invested over $1 billion of institutional allocations. In 2013, Pantera created the first blockchain hedge and venture funds in the United States. The firm now manages $51 billion’ in blockchain assels, Pantera funds provide investors with the full spectrum of exposure to the space, ranging from illiquid venture capital assets (including earty- stago tokens and multi-stage venture equity) to more liquid assets like biteoin and other eryptocurrencies.Pantera at a Glance Firm AUM' TRS CCL POC USC Ruan) Dre) CroneA History 2013 . Pantera launched the first cryptocurrency fund in the U.S. of Firsts 2013 Pantera launched the first blockchain venture fund 2015 Pantera Co-ClO Joey Krug co-founded Augur, the first dApp to have a token offering on Ethereum 2017 Pantera launched the first exclusively early-stage token fundPantera Blockchain Fund A new wrapper for the entire spectrum of blockchain assets. Aaschery “eax brave AME Opin Mware aR] coinbare Yom RG comme “Btaincer [Slocktotio DTerra sHCompound Obitcoin yuniswar AAVEPantera Thesis Cryptocurrency and blockchain technologies are the underpinnings of a new financial infrastructure, similar to how the internet was the underpinning of a new information infrastructure.Protocol Evolution Blockchain protocols have evolved over the past decade. Protocol O Bite ® Ethereum ® Polkadot Enables Breakthrough Global transactions & store- | Decentralized, trustless value transfer. Solved the double of-value spend problem Smart contracts, token Self-enforcing contracts that allow for programmatic, issuance control over financial transactions Blockchain interoperability & | Cross-blockchain transfers of any type of asset. enhanced scalability Scalability enhancementsDecentralized Finance Similar to how the internet was the underpinning of 2 new information infrastructure, blockchain tech and cryptocurrency are the underpinnings of a new financial infrastructure. There are five basic primitives to any financial system: UNIT OF LENDING & ACCOUNT EXCHANGE ISSUANCE MARGIN LEVERAGE Stable currencies Decentralized Globally-accessible Borrow Smart contracts can can be used for ‘exchanges allow for lending products cryptocurrencies on be structured to trade and trading of assets enabled through margin using other _allow for leverage. commerce. with no programmable cryptocurrencies as intermediary. tokenized debt. collateral.Aggregators/Wallets INSTADAPP Vane DeFi Decentralized Derivatives Exchange . Ecosystem [ VEGA Onset } (7 bending ~/— DEX —. Marketplace. - Payments ~~ Synthetics ~. Tho ecosystom for DoFi is rapidly ) ‘oxpanding with the emergence of now nee || ates Arvows ‘iver ‘companies and protocols supporting the M Brees 9" || @ recon ont} industry. {_conseins }| Jah owns) Rowpooe J $$ oractes ——____—_—, ( Aris O otic augur Layer-t Blockchains > { Porat — Obitcoin —NINEAR —raisanmcwEMOSDeFi Growth The amount of value locked up in DeFi protocols is now over $165 billion and decentralized exchanges transact around $80 billion in monthly trading volume. Value Locked in DeFi Protocols DEX Trading Volume”NFTs Non-Fungible Tokens, ‘A unit of data on a blockchain, whore each NFT can represent a unique digital sm, and thus they are not interchangeable. Tokens can represent virally anything, including assets like music, art, video, game items. Marketplaces like MakersPlace and OpenSea allow users to buy, sell, and create NFTS. Sold for 39k ETH or $69mm (CryptoPunk #7823 Sold for St17mmAdditional Areas of Focus Infrastructure Blockchain toch and traditional infastructue fora robust ecosystom ‘Alchemy provides doveloprs with the fundamental bling bocks they need to create decentralized pplication. alchemy Payments Enabing consumers and businesses to send payments in crypto Voom isa payment service proxidor that hops simply the way businesses send and receive funds. veem Exchanges ‘ading inrastructue for atto-erypto and crypto-to-crypo transactions itso 121 0 meico-tased oxchange tat allows ser UBIO ay, sot and sond erste Enterprise Blockchain-intograted solutions far everyday businossos Chronicle isthe custodian ofthe MediLedger Network - 2 blockehain powered network or the lite sciences industy Gcrsomeres Consumer Services and products for everyday consumers MokorsPtaco isthe promior market to discover, calloct rakersloc® ang vest in uly aro and auton egal artworks Finance Services that enhance porto management and trade execution ‘Stakod helps invostrs eam yold tom staking and DoF ked cn Ms : St without taking custody of thir erpto assetsNon-Bitcoin+Ethereum Market Share See) De ene ed has grown to 39% from 16% at the os Cenk De ie | Cu and De a Ly Polkadot. eredWhy NowBudget Deficit The United States printed more rN Ne ete aig money in June 2020 than in the first two centuries after its founding,The Price of Paper Money It seems like the price of everything is surging up. A bottor porspectivo is that the value of most things is relatively stable - it's just the value of paper money that is moving. To help visualize what Quantitative Easing is doing to the price of the US dollar ‘we've plotted the value of the US dollar ~ as quoted in terms of things that cannot be quantitatively eased: WEY Segarra cane eedLegendary Investors in Bitcoin The list of big name investors in cryptocurrency is expanding. Paul Tudor —_ Investing in bitcoin is “like Stanley “I'm a bit of a dinosaur, but | have Jones investing with Steve Jobs and Druckenmiller warmed up to the fact that bitcoin esteararanie Apple or investing in Google Choiman ard Presiore COUIO be an asset class that has InvesmentCoporton @arl.n"l think we are in the first {fo close) a lot of attraction as a store of inning of bitcoin and its got a Duaueene Cantal value," (Nov 2020) Management long way to go.” (Oct 2020) BIG-NAME CRYPTO SUPPORTERS. Abigail Johnson sim Cramer Mark Cuban Kevin OLeary Cathie Wood Chamath Palihapitiya Tim Draper Jack Dorsey Naval RavikantCorporations, Institutions Buying In what has been an unprecedented year of macroecono! policy, corporations and i uncertainty and monetary and fiscal tions are turning to bitcoin as an inflation hedge. MxroStrategy MassMutual Bsquare MicroStrategy invested $1.5 billion MassMutual, founded in 1851, into bitcoin in a long-term play on invested $100 million in bitcoin out it as a store-of-value Square invested 1% of total assets into bitcoin totaling $50mm or of its general account 4,709 bitcoins ENDOWMENTS IN CRYPTO fale University Ea § Stanford HARVARD [I]jp See" GW DartmouthInvesting PerspectivesGlobal M2 $100 trillion Asymmetric Opportunity be ‘$9 trillion We're sil in tho eary stages of adoption Cryptocurency may servo as a glbal eee onal reaorve cumency ofa viable stomative t pairs fixed-supply assets like gold. $65 trillion Smart contrat platforms can be the Yon Atm mana underpining of @ new open financial Grog, Sus orton, Cryptocurrency Market Size $2 trillion Bitcoin, Ethereum, Polkadot, etc.233% Compound Annual Growth Rate Sica has tanks bho on Re cnn erage, Bitcoin has tripled every year inception,Non-Correlated Asset One of our principal arguments for bitcoin in a portfolio is that it has had a 233% 11- year compound annual growth rate with essentially zero correlation to stocks, bbonds, oil, and other asset classes.Bitcoin Supply & Demand The most basic framework for analyzing Bitcoin’s price is simple Econ 10%: Supply and Demand Bitcoin Supply & Demand (Stylized) Demand for bitcoin is rising sharply as new companies begin offering crypto trading such as PayPal The bitcoin block reward halved in May 2020, further limiting the supply available for purchase.Five Orders of Magnitude [Fe orders erMagntude | De Bitcoin Price Using Bitcoin Pew ey ty Dec 2010 a ke) Tear Ea Terex) Peer) a) 1,000,000 Tes) ExT) Lane Pek me) Dec 2020 Pk k lo) EnerPossible Terminal Value of Bitcoin Nica) Cee When i 1,000 Dec 2010 A ck) IEE 20 elke) perry a) 1,000,000 DE) Exe) aie 20,000 100,000,000 Dec 2020 Pree mm Ree Re ele) prea CO RCHigher Lows ‘As investors, we tend to get caught up in the all-time highs. Equally important aro the yearly lows. Looking back at the low-point of the market for each year, bitcoin has shown consistent positive growth ~ there's only fone year with a lower low than the previous year's. Year 2012 2013 2014 2016 2017 2018 2019 2020 2021 Bitcoin Low Price $4 S13 $289 $355 $756 $3,191 $3,391 $4,107 $28,723Market AssessmentMarket Volatility {A convergence of things caused the Weewemkce that cma blockchain markets to go down sharply. China “bans* bitcoin (tor the third time) Tax Day * Elon Musk's 180 The volatility has presented a very compelling opportunityE.S.G. TL:DR: Blockchain is wonderful for E.S.G. Tho recent ESG uproar has spent an inordinate amount of enorgy discussing the E in ESG. But the conversation shouldn't end there = it's important to dig deeper into bblockchain’s relationship with the other two-thirds of the acronym. In our view, the total effect is unequivocally positive. bel Ter fe) Peltor) ee B Te ere end [Teen aR Cui)China Ban Impact ene ea ects Ce en me Rs Chinese policy is definitely shutting down mining in China. Our models show that up to 56% of the change ee eed Oe eed Cd ea The shaded area of shutin mining capacity is worth ee ea) The recovery is happening exactly as forecast. The network has already recovered 68% Cre ne ea) eeu Rac Cea) ‘On Bitcoin Difficulty/Electricity ConsumptionDeviation From Trend Bitcoin is currently trading 40% below its ‘ti-yoar exponential trend (at $43,800), ‘At the recent peak, it went just a touch ‘over trend value. As you can see, past peaks were many multiples of trend value. icoin Deviation from tI-Year TrondHuman Nature is Pro-Cyclical eroP Nm ae es Pecan Cece eeu Pe Unum When the markets are crashing ~ we want Meets CRC ee CR ‘Above 776% Cia od eae Cea eR) ' 1 i a Cd Ee ed aPantera Funds Pantera funds provide investors with the full spectrum of exposure to the space, ranging from illiquid venture capital assets (including early-stage tokens and multi- stage venture equity) to more liquid assets like bitcoin and other cryptocurrencies.Pantera Hedge Funds Pantera hedge funds accept new investments at the end of each month and Pantera Bitcoin Fund accepts new investors on any US. banking day. All Pantera funds are open to US. and non-U.S. investors. Liquidity: Quarterly EARLY-STAGE TOKENFUND Assets: Private investments in token projects prior to launch Liquidity: Quarterly ST Assets: Publicly traded tokens Liquidity: Daily PANTERA BITCOIN FUND. Auch ehocee Exposure to early-stage blockchain protocols, following a venture-style model Actively managed exposure to publicly traded digital assets with a risk management overlay Passive exposure to bitcoin with daly liquidity, no lockups, low fees, and no premium to NAVPerformance Highlights eae Ce Ee Ros oe eT ee Dene ene] a TY Reamer nari pees Pee ore = = Aun? rr 7AM a aw Dyke Pay eK “pleted a coi cate ry =e at Era cy ora oe na cedPantera Blockchain Fund ‘A now fund offering exposure to all facets of the ceryptocurrency and blockchain markets. $600mm Simm Target raise Minimum investment The Fund will invest in illiquid venture capital assets (venture capital equity & early-stage tokens) and liquid tokens like bitcoin and other cryptocurrencies Venture equity Early-stage tokens Liquid tokens Equity in companies building Tokens, or rights to future tokens, Liquid digital assets spanning products and services in the underpinning new protocols. Similar various functions like store-o!- developing blockchain ecosystem. to a venture-style model. value, decentralized finance and adjacent assets.Summary of Terms Target/Commiumonts Organization Investment Perod/Torm Capital Calis Schedule {$600 maton Delawaco Lied Partnership ‘5-year invstmont pero 1-year orm ¢ approved extonsion 40% at closing: mairng 60% of LP commitments in quarter capil cals at fiscal quater ends Unltd recycing of laud pototo asets, including post Ksted tokens 20% recycling of VC Haut evens (Ona pro rata pari passu bass, sutoc to Ltod Parner Advisory Commitee approval 2% of commited capital annually 20% up to 40% net IRR, and 90% thereafter European - 100% atu of called capital prior o paying cariod interst Fund LPs wih capital coretments of Sm or more wil have the option to cllectvlyco-vest at a minimum of 19% ‘ofeach VC oF liquid ton dca subject 10 Tk maragoment and 1D performance fees ‘Any remuneration ceived by management company wil reduce management foe Si mion Tho lesser of 2% of he Fund or $10 milion US. Counsel - Schute Roth Regulatory Counsel - Cooley: Deal Counsel - Latham & Watkins ‘Admiisuatot - MG Stow Autor -Cohon & CoWhy PanteraPantera Edge TECHNICAL TALENT Co-CIO Jooy Krug co-founded Augur, the frst major project on Ethereum, Investment team includes senior professionals with engineering degrees from Columbia, Caltech, and Princeton. NETWORK Pantora community includes over 100 biockchain projects with best-in-class ‘dovelopers and entroprencuss. Active deal management provides counsel, funding, cross-polination, reterals, M&A ‘guidance. \VALUE-ADD INVESTING Pantora provides porttolio companies with ‘uidance and tools for success, Resources range from technical feedback, team building, egal guidance, MBA strategy, ‘and more. LEADERSHIP The toam has decades of experionce at top: tior financial fms Talent from Goldman Sachs, Tiger Management, Bridgewater, and JP Morgan INFRASTRUCTURE Bestin-class trading infrastructure and tools for tade execution Strong relationships with prime brokerages, exchanges, and custodians.Alpha Generation Coa cua Getting long bitcoin or bitcoin and Label ce eel le CU ee on Sa active management can add tremendous ey Perec) cre) beac ea a Early-Stage Token Fund er Rca) ci) tery Peking a Return Srey Ser) BertUpcoming Travel Please reach out to panteracapiial.com if you are interested in meeting with us. New York City, Soptember 21-24 & November 14 ‘Soptomber 23, Blockchain Lunch at 2pm Geneva, September 21 London, Septombor 22 & 23 September 2, Blockchain Lunch at t2pm Zurich, September 24 | including @ Blockchain Lunch at t2pm Boston, Soptomber 27 | including a Blockchain Lunch at f2pm Palo Alto, October 18, Blockchain Lunch at Y2pm Chicago, November 4 | including a Blockchain Lunch at t2pm Detroit, November 5 Portugal, November 8-10PANTERA pan terra (Latin), ‘spanning the earth’ pantera (Italian and Spanish), ‘panther’ pan era, ‘spanning eras’ Investor Retmions +1650 854 7000 irapanteracapitalicom San Francisco San Juan New York City