Welcome to the Enterprise Digital Asset Summit (EDAS) Highlight Series! Each week, we’re diving into one of the highest-rated sessions from this year’s conference.
Want to watch the full video? All session recordings are available for on-demand viewing and CPE credit at Bitwave University.
EDAS Highlight Series: Session #4
Modern finance leaders often wear several hats. But how do top teams drive an effective organization with limited resources and a shifting regulatory environment? This exciting session took a behind-the-scenes look at how two incredible finance leaders face these challenges while looking ahead for new opportunities to scale their businesses.
This session featured Betsabe Botaitis, CFO & Treasurer (Hedera), and Steven Lim, Head of Finance (Magic Eden). Bitwave CEO and Co-Founder Pat White moderated the discussion.
Day-to-Day Challenges for the CFO
- One of the most important items for a CFO is to monitor the treasury balance. But financial leaders managing digital assets have an extra operational complexity – they need to understand their exposure to crypto and FIAT daily.
- One way to keep up-to-date on the latest information is to stay connected with other finance leaders. Knowledge-sharing across business partners is critical.
“There’s a lot of focus on making sure we have the right balance between the crypto we have on hand versus the cash we need to operate our expenses” - Steven Lim
“I feel like I live in a multiverse… you are in a parallel universe between FIAT and digital assets.” - Betsabe Botaitis
Operating Alongside Traditional Institutions
Digital asset finance leaders often find themselves educating and informing leaders at traditional institutions, banks, and VCs about the power of digital assets – and the level of on-chain knowledge with these partners can vary widely.
- Residual fears of crypto-related businesses are real. There’s still a mix between those traditional organizations that are “crypto-curious” and those strongly opposed to supporting organizations with digital asset transactions.
- Finding strong banking partnerships remains a challenge for crypto CFOs today - even if there is a high degree of transparency and education available.
- To avoid potential banking issues in the future, consider leveraging several financial institutions and accounts at once. Avoid exclusively managing your portfolio with one bank.
“It’s so important to have a diverse portfolio of banking partners.” - Steven Lim
“We are not only managing balance sheets of assets… we are managing strong relationships and we have the responsibility to ensure (institutions) understand where we’re heading together as an industry.” - Betsabe Botaitis
Expectations of Web3 Finance Leaders
In many businesses, the CFO role has a significant impact on profitability and revenue. But, there are some clear distinctions between finance leaders within on-chain organizations and traditional companies.
- Because the regulatory compliance landscape for digital assets is constantly changing, leading Web3 finance teams take an incredibly conservative approach towards compliance.
- There’s a tension between the need for enterprise-grade controls and operating within a fast-paced, agile startup environment. Betsabe describes this as needing both an “enterprise” and “entrepreneurial” mindset.
- The office of the CFO can drive org-wide impact by adopting a culture of reporting that is readily available – for example, if finanial spend data is available, faster decisions can happen.
“One of the biggest expectations for my office… is to operate as if we were a publicly traded company.” - Betsabe Botaitis
“As businesses scale and the operations begin to really ramp up, it’s the finance leaders job to be the ‘grownup in the room’–to help people arrive at the right answer.” - Steven Lim
Want more? Watch the full session recording on Bitwave's online certification platform, Bitwave University!
Disclaimer: The information provided in this blog post is for general informational purposes only and should not be construed as tax, accounting, or financial advice. The content is not intended to address the specific needs of any individual or organization, and readers are encouraged to consult with a qualified tax, accounting, or financial professional before making any decisions based on the information provided. The author and the publisher of this blog post disclaim any liability, loss, or risk incurred as a consequence, directly or indirectly, of the use or application of any of the contents herein.
