Corporate Crypto Portfolios Diversify with $500 Million Altcoin Investments

Major corporate holders are building treasuries out of new altcoins, with a $450 million SUI investment and $500 million in Solana. HBAR also gained a new institutional investor, but with an undisclosed commitment size.

For SUI and HBAR especially, these corporate holders are prioritizing blockchain technical performance over asset valuation. This might be a helpful tool for predicting future institutional inflows.

Altcoin Treasuries Diversify

Over the last few months, corporate Bitcoin acquisitions have become a worldwide trend, but the market might be getting a little crowded. Last week, ETH outshined BTC in several key related metrics, seeing fresh corporate investment and heightened interest. Today, companies are continuing to turn towards altcoin treasuries with SUI and HBAR investments.

Mill City Ventures, a US-based firm, announced today that it’s contributing a staggering $450 million to its own altcoin treasury. It’s investing this money into Sui, a high-performance blockchain that’s been exhibiting strong gains lately. Mill City received a huge investment from Karatage, a hedge fund that’s very bullish on Sui’s blockchain:

“We believe that Sui is well positioned for mass adoption with the speed and efficiency institutions require for crypto at scale, plus the technical architecture capable of supporting AI workloads while maintaining security and decentralization,” claimed Stephen Mackintosh, co-founder of Karatage and incoming CIO of Mill City.

More than price performance, Mill City is choosing Sui due to its capacity to power infrastructure for stablecoins and other Web3 applications.

This is the same reason that Immutable Holdings, a Canadian firm, is choosing HBAR for its own altcoin treasury. So far, it only holds $1.3 million of Hedera’s cryptoasset, but it’s planning to acquire more:

“We believe Hedera has laid the groundwork for institutional-grade blockchain infrastructure. In our view, its focus on energy efficiency, throughput, and real-world adoption positions HBAR as a promising asset for long-term strategic management,” claimed Chairman Jordan Fried.

Additionally, Upexi is committing $500 million to Solana for its own altcoin treasury. It’s not the only firm that’s choosing SOL over any other altcoins, but it may become the largest one if its investment works out as advertised. A competition in this sector could further encourage Solana gains.

All that is to say, altcoins are substantially displacing Bitcoin as the preferred asset for corporate treasuries. To be clear, BTC has an immense head start, but ETH, SOL, SUI, and HBAR are all gaining prominence. Savvy investors should keep an eye out to see which assets might also receive a corporate windfall soon.