Hyperion DeFi Appoints PayPal Executive as CFO

David Knox joins Hyperion DeFi as CFO, leaving PayPal.

David Knox, a senior executive at PayPal, has joined the digital asset management firm Hyperion DeFi as Chief Financial Officer, according to Bloomberg.

Knox spent a year and a half at PayPal, where he led capital markets and finance in the lending sector. Previously, he held significant positions at SoFi Technologies and Cantor Fitzgerald.

Knox described his move as an “incredible opportunity to be at the forefront of financial innovation.”

Hyperion is accumulating cryptocurrencies like the HYPE token from the Hyperliquid platform, betting on their price appreciation. The firm was formerly known as Eyenovia Inc. and was listed on Nasdaq. In July, following a rebranding, it raised approximately $50 million, and its shares have surged over 400% since the start of summer.

A “Dangerous” Metric for Investors

The departure of a top executive from a TradFi giant comes amid industry discussions on valuation methods for crypto treasury companies. Greg Cipolaro, Head of Research at NYDIG, urged the abandonment of the mNAV metric.

According to him, the indicator “needs to be deleted and forgotten.” Cipolaro believes it misleads investors.

The analyst noted that mNAV does not account for other operational assets of firms beyond cryptocurrencies. Moreover, the metric inaccurately reflects convertible debt, treating it as equity. Cipolaro emphasized that holders of such debt would actually demand cash, not shares, which poses a more significant obligation for the company.

The analyst’s statement followed Strive’s announcement of its acquisition of Semler Scientific. This marked the first merger of two crypto treasury companies. Cipolaro added that the final stock value of the combined firm would depend on the premium or discount to the net asset value set by investors.

In September, WSJ journalists reported that U.S. regulators are investigating potential insider trading cases involving securities of DAT firms.