The Crypto Treasury Playbook With Ben Forman & Josh Solesbury From ParaFi Capital
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What's actually interesting here is, like, the barriers to entry to copy micro strategy, at least at a small scale. Like, you need a shell legal entity, and I guess, like, a half half decent management team. A lot of these management teams aren't very good. But but, you know, it's actually, like, from a game theory standpoint, like, if you're a failing public company, this is actually probably, like, the most EV positive, you you know, one of the EV positive things you you can do in terms of pursuing this.
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Jason. Yeah. Excited excited to dig in.
Yeah. Josh, your episode from, when was it, forty five or sixty days ago is one of the the most listened to episodes of the year. So we, it seems like, crypto I don't even know the term. Like, crypto treasury vehicles or public token vehicles, is is hot. But, Ben, what are we calling these things these days?
I I've heard someone call them DATs, d a t. So digital asset treasuries, but just called DATs, which we'll see we'll see if that sticks. But, like, crypto treasuries, digital asset treasuries, there are a few other flavors of of what they're called. Yeah.
Well, anyways, I wanted to do I mean, there's been so much that's happened since that episode. So I just wanted to have you guys back on and discuss. I'm gonna read maybe from your guys' investor letter, Ben, that you send out to LPs, and we we can maybe play off of that. So for for those who don't know and for those who missed the episode with Josh, the Perify has been one of the most active firms in the crypto treasury space. I think you guys had your January investment in Soul Strategies, which is a Canadian public vehicle, focused on Solana. But, Ben, kinda quoting you from your LP letter,
So I think there's a fundamental question that is kinda like the first principles public company be worth more than $1? Because that's the dynamic that has existed and persisted with MicroStrategy, for now coming up on the past about two and a half years. It's traded at a pretty healthy premium to to NAV. And so the big question is why. And actually, you know, when I first encountered MicroStrategy, back when they were starting to do their convertible bond issuance, the first convertible bond issuance, I believe, was, like, in 2018, 2019. They started to buy Bitcoin, with debt, and with cash o
Can I try to repeat that back to you, but with the knowledge that I'm not, as smart on the financial side as you guys? So this might sound, foolish, but let me let me try to repeat that back to you. So what you're trying to answer is the main and when whenever someone talks about public treasury vehicles, you're asking the question, why does, a $100 of BTC or ETH trade at a premium when it's held by a public company? That's the big question that people maybe who are familiar with these with these vehicles. That's the that's the number one question everyone asks. Or, why does MicroStrategy trad
a bunch of footnotes and, like, you know, this is Yeah. Yeah. Yeah. The essence of it,
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