Mill City Secures $450M for Sui-Centric Crypto Treasury Strategy Led by Karatage Sui Foundation

Mill City Ventures III, a U.S.-based finance firm specializing in serving high-net-worth individuals and small-cap companies, has secured $450 million in investor commitments to launch a Sui-centric crypto treasury strategy. The funding, led by London-based hedge fund Karatage Opportunities and the Sui Foundation—the governing body of the Sui blockchain—is set to close by July 31, 2025. The majority of the proceeds will be allocated to purchasing SUI, the native token of the Sui blockchain, through open market activity, institutional deal flow, and a negotiated agreement with the Sui Foundation. A minor 2% of funds will support Mill City’s existing short-term lending business [1].

The investment underscores growing institutional confidence in blockchain technology, particularly in decentralized finance (DeFi) and AI-driven applications. Stephen Mackintosh, proposed Chief Investment Officer of Mill City and General Partner at Karatage, highlighted the strategic timing of the move, emphasizing Sui’s ability to meet the performance demands of both institutional crypto adoption and AI workloads. “Sui’s speed, efficiency, and technical architecture are tailored for mass adoption, balancing scalability with security and decentralization,” he stated. Christian Thompson, Managing Director at the Sui Foundation, added that Sui’s design is optimized for next-generation decentralized applications and real-world crypto use cases [1].

The $450 million commitment represents one of the largest single investments in a blockchain treasury strategy this year. Sui’s modular design and high-throughput capabilities have drawn developers and investors seeking scalable Web3 solutions. Mill City’s strategy includes token buybacks to stabilize liquidity, potentially reducing volatility risks. The firm also aims to foster enterprise partnerships leveraging blockchain’s utility. Analysts note that the initiative aligns with broader trends in corporate crypto adoption, such as PayPal’s expanded crypto payments and Christie’s real estate ventures, signaling blockchain’s shift from speculative hype to practical integration in mainstream finance [1].

Success of the strategy will hinge on Sui’s ability to attract developers and maintain competitiveness against blockchains like Solana and Ethereum. Mill City’s track record in managing large-scale capital deployments positions it to balance growth with risk mitigation through staking and liquidity provision. However, analysts caution that long-term viability depends on Sui’s ecosystem development and its capacity to address technical challenges in decentralized networks [1].

The investment also reflects a strategic bet on the convergence of crypto and AI. Sui’s infrastructure is designed to support machine learning workloads while preserving decentralization, a feature analysts believe could differentiate it in the market. Galaxy Asset Management, one of the fund’s participants, will oversee the crypto treasury, further solidifying institutional credibility in the initiative [1].

Sources:

[1] [Finance company Mill City set to secure $450 million to kickstart Sui treasury strategy] [https://cryptobriefing.com/sui-treasury-strategy-mill-city/]