Mill City Ventures Allocates 98% of $450M to SUI as Stock Surges 20%

Mill City Ventures III, Ltd. (NASDAQ: MCVT), a non-bank lender and specialty finance company, has announced a $450 million private placement to implement a treasury strategy centered on the SUI token, the native cryptocurrency of the Sui blockchain. The initiative, disclosed on July 28, 2025, allocates 98% of proceeds—approximately $441 million—to acquiring SUI tokens, with the remaining 2% allocated to short-term lending operations. The offering, priced at $5.42 per share for 83.3 million shares, is set to close by July 31, 2025, pending regulatory approvals [1].

The transaction, led by London-based hedge fund Karatage Opportunities, includes participation from institutional backers such as the Sui Foundation, Galaxy Digital, Pantera Capital, and Electric Capital. Post-closing, Karatage’s Marius Barnett and Stephen Mackintosh will join Mill City’s board as chairman and chief investment officer, respectively, while former Square general counsel Dana Wagner will serve as an independent director [1]. The Sui Foundation’s involvement highlights the company’s strategic alignment with the blockchain’s development roadmap, offering direct insights into ecosystem growth.

The capital will be deployed through a diversified acquisition strategy, including open market purchases, institutional-grade deal flow, and negotiated agreements with the Sui Foundation. Approximately 60% of the funds will target on-chain infrastructure initiatives, 30% will support partnerships with SUI-based startups, and 10% will bolster liquidity pools. Stephen Mackintosh emphasized Sui’s technical architecture as a key differentiator, noting its ability to support institutional-grade applications like stablecoins, AI integration, and decentralized finance while maintaining security and decentralization [1].

The announcement triggered immediate market reactions, with Mill City’s stock rising over 20% in early trading [2]. SUI tokens also saw a surge, peaking at $4.43 before consolidating near $4.00, close to its January all-time high of $5.35. Analysts view the move as indicative of growing institutional confidence in blockchain infrastructure, though risks such as regulatory scrutiny and market volatility remain [2].

Mill City’s strategy diverges sharply from traditional corporate treasury models by directly allocating a majority of capital to a single digital asset. The company’s prior focus on short-term lending and structured finance contrasts with its new approach, which seeks to capitalize on Sui’s scalability for real-world applications. The Sui Foundation’s backing further strengthens the partnership, granting access to development insights and ecosystem expansion plans [1].

The offering, exempt from registration under Section 4(a)(2) of the Securities Act, is subject to resale registration with the SEC. Cautionary notes include potential reclassification of SUI as a security and regulatory shifts impacting crypto markets [1]. By adopting a SUI-focused treasury strategy, Mill City positions itself as the first publicly traded entity to leverage institutional-grade blockchain infrastructure, a move that could influence broader corporate treasury practices in the crypto sector [3].

Sources:

[1] [Mill City Ventures III, Ltd. Announces Private Placement](https://www.businesswire.com/news/home/20250728220301/en/)

[2] [Mill City Stock Jumps 20% Following $450M Sui Treasury](https://www.cryptotimes.io/2025/07/29/mill-city-ventures-stock-jumps-20-following-450m-sui-treasury/)

[3] [Mill City Allocates 98% of $450M to SUI](https://www.ainvest.com/news/bitcoin-news-today-mill-city-ventures-allocates-98-450m-sui-largest-institutional-blockchain-bet-2507/)