# Crypto Treasury Management 

*New Era for Treasury Management*

By [Crypto Treasury Management](https://paragraph.com/@3pommk) · 2025-08-02

crypto, treasury, strategy

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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.

Crypto Hedge Fund Approach to Blockchain Treasury Management
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### Primary Fund Types Handling These Strategies

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

### Current Market Performance Context

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.

### Fund Strategy Categories for Sui-Type Investments

**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
    
    ### Why Crypto Hedge Funds Are Ideal for This
    
    **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.
    
    ### Typical Fund Structure for Sui-Type Investments
    
    **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
        
    
    ### Key Players in This Space
    
    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.
    
    ### Advantages Over Traditional Treasury Management
    
    1.  **Specialized Expertise**: Deep crypto/blockchain knowledge
        
    2.  **Deal Flow**: Access to private placement opportunities
        
    3.  **Risk Management**: Crypto-specific hedging strategies
        
    4.  **Operational Infrastructure**: Custody, compliance, and execution capabilities
        
    5.  **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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*Originally published on [Crypto Treasury Management](https://paragraph.com/@3pommk/crypto-treasury-management)*