# Crypto Treasury Management 

> New Era for Treasury Management

**Published by:** [Crypto Treasury Management](https://paragraph.com/@3pommk/)
**Published on:** 2025-08-02
**Categories:** crypto, treasury, strategy
**URL:** https://paragraph.com/@3pommk/crypto-treasury-management

## Content

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% Stablecoins10% Bitcoin Hedge Fund10% RWA protocols10% Liquid staking (ETH)10% Operational needsSui 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 ManagementPrimary Fund Types Handling These Strategies2) 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 companiesCurrent Market Performance ContextCrypto 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 InvestmentsPrivate Token Strategies:Pre-listing private placements (like Sui's offering)SAFT (Simple Agreement for Future Tokens) investmentsSeed and Series A token roundsLiquid Token Strategies:Long/short equity approaches, arbitrage, market-making, and volatility-weighted positionsMarket making, arbitrage, and high-frequency trading strategies, with liquidity being keyWhy Crypto Hedge Funds Are Ideal for ThisExpertise & Infrastructure:Deep understanding of tokenomics and blockchain fundamentalsExisting relationships with blockchain projects for private placementsTechnical due diligence capabilities for evaluating gaming ecosystemsRisk management systems are designed for crypto volatilityRegulatory Structure:Properly structured for accredited/qualified investorsCompliance frameworks for digital asset investmentsAbility to handle both private and liquid token investmentsInvestment 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 InvestmentsAccess Requirements:High minimum investments ($1M+ typically)Accredited investor statusLock-up periods for private placements (often 12-24 months)Fee Structure:Management fees (typically 2%)Performance fees (typically 20%)Carry on private investmentsKey Players in This SpaceLeading 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 ManagementSpecialized Expertise: Deep crypto/blockchain knowledgeDeal Flow: Access to private placement opportunitiesRisk Management: Crypto-specific hedging strategiesOperational Infrastructure: Custody, compliance, and execution capabilitiesPortfolio Construction: Ability to blend private and liquid positionsFor 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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