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On July 31, 2025, Mill City Venture announced the closing of a $450 million private placement, with 98% of the allocation going into Sui's treasury strategy, making it the first public entity to adopt such a blockchain-focused approach. What does this mean to the treasury manager of the public companies to consider incorporating the Sui-type blockchain protocol?
[Market Momentum (Aggressive) vs Stability Anchor (Passive)]
The key would be active monitoring and potential rebalancing as market conditions evolve, considering the following points;
How does your organization's risk tolerance and liquidity requirements?
Have you stress-tested this allocation against scenarios like a major DeFi exploit or regulatory crackdown?
Is geographic/jurisdictional diversification a factor in your protocol selection?
For example.....
30% Blue-chip lending
30% Stablecoins
10% Bitcoin Hedge Fund
10% RWA protocols
10% Liquid staking (ETH)
10% Operational needs
Sui presents a compelling but high-risk treasury opportunity. The gaming market penetration strategy shows strong fundamentals with over 70 games in development and strategic partnerships. However, the extreme volatility requires careful risk management.
1) What % of DAO treasury is to be allocated to such a high-risk treasury?
Organizations should consider this as a growth allocation within a diversified treasury strategy, with appropriate position sizing and risk controls in place. Crypto native hedge funds are the primary institutional players handling these types of blockchain treasury strategies and private placements.
2) Who are the Crypto-Native Hedge Funds?
1. Crypto-Native Hedge Funds: There are two primary ways to gain direct exposure: Venture funds holding private equity and liquid tokens, and actively managed hedge funds investing in liquid tokens. For Sui private placements, both categories are relevant.
2. Specialized Strategies: Funds invest in tokens during the private stage at a discount to listing price, similar to venture capital equity but investing in tokens rather than companies
Crypto hedge funds had a strong 2024, with solid gains, though Bitcoin's 120% surge outshone them. The beta of crypto hedge funds consistently dropped below 1.0 in 2024-2025, indicating reduced correlation with broader crypto markets.
Private Token Strategies:
Pre-listing private placements (like Sui's offering)
SAFT (Simple Agreement for Future Tokens) investments
Seed and Series A token rounds
Liquid Token Strategies:
Long/short equity approaches, arbitrage, market-making, and volatility-weighted positions
Market making, arbitrage, and high-frequency trading strategies, with liquidity being key
Expertise & Infrastructure:
Deep understanding of tokenomics and blockchain fundamentals
Existing relationships with blockchain projects for private placements
Technical due diligence capabilities for evaluating gaming ecosystems
Risk management systems are designed for crypto volatility
Regulatory Structure:
Properly structured for accredited/qualified investors
Compliance frameworks for digital asset investments
Ability to handle both private and liquid token investments
Investment Approach: Crypto hedge funds employ systematic and discretionary strategies, using computer transaction processing models for structured frameworks while reducing emotional influences.
Access Requirements:
High minimum investments ($1M+ typically)
Accredited investor status
On July 31, 2025, Mill City Venture announced the closing of a $450 million private placement, with 98% of the allocation going into Sui's treasury strategy, making it the first public entity to adopt such a blockchain-focused approach. What does this mean to the treasury manager of the public companies to consider incorporating the Sui-type blockchain protocol?
[Market Momentum (Aggressive) vs Stability Anchor (Passive)]
The key would be active monitoring and potential rebalancing as market conditions evolve, considering the following points;
How does your organization's risk tolerance and liquidity requirements?
Have you stress-tested this allocation against scenarios like a major DeFi exploit or regulatory crackdown?
Is geographic/jurisdictional diversification a factor in your protocol selection?
For example.....
30% Blue-chip lending
30% Stablecoins
10% Bitcoin Hedge Fund
10% RWA protocols
10% Liquid staking (ETH)
10% Operational needs
Sui presents a compelling but high-risk treasury opportunity. The gaming market penetration strategy shows strong fundamentals with over 70 games in development and strategic partnerships. However, the extreme volatility requires careful risk management.
1) What % of DAO treasury is to be allocated to such a high-risk treasury?
Organizations should consider this as a growth allocation within a diversified treasury strategy, with appropriate position sizing and risk controls in place. Crypto native hedge funds are the primary institutional players handling these types of blockchain treasury strategies and private placements.
2) Who are the Crypto-Native Hedge Funds?
1. Crypto-Native Hedge Funds: There are two primary ways to gain direct exposure: Venture funds holding private equity and liquid tokens, and actively managed hedge funds investing in liquid tokens. For Sui private placements, both categories are relevant.
2. Specialized Strategies: Funds invest in tokens during the private stage at a discount to listing price, similar to venture capital equity but investing in tokens rather than companies
Crypto hedge funds had a strong 2024, with solid gains, though Bitcoin's 120% surge outshone them. The beta of crypto hedge funds consistently dropped below 1.0 in 2024-2025, indicating reduced correlation with broader crypto markets.
Private Token Strategies:
Pre-listing private placements (like Sui's offering)
SAFT (Simple Agreement for Future Tokens) investments
Seed and Series A token rounds
Liquid Token Strategies:
Long/short equity approaches, arbitrage, market-making, and volatility-weighted positions
Market making, arbitrage, and high-frequency trading strategies, with liquidity being key
Expertise & Infrastructure:
Deep understanding of tokenomics and blockchain fundamentals
Existing relationships with blockchain projects for private placements
Technical due diligence capabilities for evaluating gaming ecosystems
Risk management systems are designed for crypto volatility
Regulatory Structure:
Properly structured for accredited/qualified investors
Compliance frameworks for digital asset investments
Ability to handle both private and liquid token investments
Investment Approach: Crypto hedge funds employ systematic and discretionary strategies, using computer transaction processing models for structured frameworks while reducing emotional influences.
Access Requirements:
High minimum investments ($1M+ typically)
Accredited investor status
Lock-up periods for private placements (often 12-24 months)
Fee Structure:
Management fees (typically 2%)
Performance fees (typically 20%)
Carry on private investments
Leading crypto hedge funds handling blockchain treasury strategies include firms like Pantera Capital, Polychain Capital, Multicoin Capital, and Galaxy Digital - all of which have experience with private blockchain investments and gaming-focused strategies.
Specialized Expertise: Deep crypto/blockchain knowledge
Deal Flow: Access to private placement opportunities
Risk Management: Crypto-specific hedging strategies
Operational Infrastructure: Custody, compliance, and execution capabilities
Portfolio Construction: Ability to blend private and liquid positions
For Organizations looking to incorporate Sui private placements into treasury management, partnering with or investing through crypto-native hedge funds is typically the most practical and effective approach, given their specialized expertise and infrastructure for handling these complex digital asset strategies.
Lock-up periods for private placements (often 12-24 months)
Fee Structure:
Management fees (typically 2%)
Performance fees (typically 20%)
Carry on private investments
Leading crypto hedge funds handling blockchain treasury strategies include firms like Pantera Capital, Polychain Capital, Multicoin Capital, and Galaxy Digital - all of which have experience with private blockchain investments and gaming-focused strategies.
Specialized Expertise: Deep crypto/blockchain knowledge
Deal Flow: Access to private placement opportunities
Risk Management: Crypto-specific hedging strategies
Operational Infrastructure: Custody, compliance, and execution capabilities
Portfolio Construction: Ability to blend private and liquid positions
For Organizations looking to incorporate Sui private placements into treasury management, partnering with or investing through crypto-native hedge funds is typically the most practical and effective approach, given their specialized expertise and infrastructure for handling these complex digital asset strategies.
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