In a compelling discussion on the evolution of digital asset treasuries, Srinivas Dhulipala of New Form Liquid Capital sat down with Ben Forman of ParaFi Capital to explore how public market strategies are reshaping capital deployment in the crypto sector. The session dove deep into the model pioneered by MicroStrategy and the broader trend of public companies accumulating crypto on their balance sheets. Their insights reflected how capital markets and crypto-native practices are intersecting to define a new future for digital money.

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Core Themes and Shifts

Forman noted that the 2020–2021 concerns about blockchain scalability have largely dissipated; infrastructure now exceeds demand, echoing "ghost cities of blockchains." Attention has shifted to public companies deploying capital into digital assets—such as Bitcoin, Ethereum, and Solana—as a corporate treasury strategy. Inspired by MicroStrategy’s model, over 150 public companies globally have now adopted similar strategies, particularly those with underperforming core businesses seeking alternative value capture.

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Key Strategy Insights

 MicroStrategy has become a case study in financial engineering, using equity issuance, convertible debt, and capital markets tools to increase Bitcoin per share. The firm is now the largest issuer of convertible debt in the U.S., issuing at 0% coupons with long horizons, maximizing upside and minimizing dilution. Forman highlighted how the company arbitrages its own stock to buy more Bitcoin, and when it trades below NAV (Net Asset Value), they buy back shares—a capital structure “Swiss Army knife.” He emphasized that owning MicroStrategy stock has outperformed holding Bitcoin directly over 1, 3, and 5-year periods.