Mill City Acquires 76M SUI Tokens in $450M Private Placement

Mill City Ventures III has completed a $450 million private placement aimed at building a blockchain-focused treasury strategy, with 76 million SUI tokens acquired at a valuation of $277 million through a direct over-the-counter arrangement with the Sui Foundation [1][2]. The acquisition, considered the largest publicly traded SUI treasury initiative to date, underscores institutional interest in the token and is expected to enhance liquidity for both institutional and retail investors [2]. The placement was led by A.G.P./Alliance Global Partners, which earned a 4% cash fee and five-year warrants exercisable at $5.962 per share [4].

The initiative was supported by key industry players, including Karatage, the lead investor, which was granted the right to nominate a board member and serve as a long-term strategic advisor for the next ten years [4]. Galaxy Digital has been appointed to manage the first $750 million of digital assets, with annual fees ranging between 0.60% and 0.80% [4]. The company has issued 75,881,625 common shares and 7,144,205 pre-funded warrants, increasing total outstanding shares to 81,944,398. Additional five-year warrants covering 7.68 million shares were distributed to major stakeholders, indicating potential for further dilution [4].

The acquisition positions Mill City as one of the largest institutional holders of SUI tokens, aligning with the Sui ecosystem’s rapid growth and high-performance smart contract capabilities [2][3]. CEO Douglas Polinsky and CFO Joseph Geraci have signed new three-year agreements, each receiving $450,000 annually, aligning their incentives with the company’s new strategy [4]. The board has also expanded to five members, including new additions Marius Barnett and Dana Wagner, bringing in seasoned expertise [4].

Despite the strategic benefits, the deal carries notable risks, including significant share dilution and exposure to volatile crypto assets, which may lead to earnings unpredictability and governance challenges [4]. The high concentration of funds in SUI tokens also exposes the company to short-term market fluctuations [4]. Analysts remain cautious, emphasizing that the success of the strategy will depend on the execution of the treasury plan and the performance of the Sui ecosystem over time [4]. The broader market has responded with mixed signals, as SUI tokens have experienced price volatility around the announcement [5].

This move by Mill City reflects a broader trend of institutional adoption of crypto assets and may serve as a benchmark for future corporate treasury strategies. As blockchain continues to evolve, such large-scale acquisitions could signal a shift in how companies approach digital assets and long-term value creation [2][3].

Source:

[1] AInvest, "Mill City Ventures Secures $450M to Buy 76M SUI Tokens", https://www.ainvest.com/news/mill-city-ventures-secures-450m-buy-76m-sui-tokens-blockchain-treasury-shift-2508/

[2] Coindoo, "Mill City Secures 76M SUI Tokens in Landmark Treasury", https://coindoo.com/mill-city-secures-76m-sui-tokens-in-landmark-treasury-move/

[3] ARCG, "Capital Markets Fuel Corporate Crypto Adoption", https://arc-group.com/capital-markets-corporate-crypto-adoption/

[4] Stock Titan, "Form 4 Filing Activity – Mill City Ventures", https://www.stocktitan.net/sec-filings/CRM/form-4-salesforce-inc-insider-trading-activity-2f7f39d2be8a.html

[5] KuCoin, "Cryptocurrency Market News Today", https://www.kucoin.com/news/category/market