Mill City Ventures Allocates 98% of $450M to Sui Token, Shares Surge 20%

Mill City Ventures III, Ltd. (NASDAQ: MCVT), a publicly traded specialty finance company, has announced a $450 million treasury strategy focused on SUI, the native token of the Sui blockchain. The initiative, disclosed on July 28, 2025, represents one of the largest institutional commitments to a single blockchain asset. The capital was raised through a private placement involving 83.3 million shares sold at $5.42 per share, with Karatage Opportunities and the Sui Foundation leading the investment. Approximately 98% of the net proceeds will be allocated to SUI token purchases, while 2% will support the company’s existing short-term lending operations [3].

The strategy, described as the “first publicly traded Sui treasury,” positions SUI as Mill City’s primary reserve asset. The company’s board will include Marius Barnett (Chairman) and Stephen Mackintosh (Chief Investment Officer), both co-founders of Karatage, alongside independent director Dana Wagner, a former Square executive [3]. The Sui Foundation, a key supporter of the Sui ecosystem, will collaborate closely with Mill City, providing insights on technological advancements and ecosystem growth.

The funding will be allocated as follows: 60% toward on-chain infrastructure initiatives, 30% to support partnerships with SUI-based startups, and 10% to bolster SUI liquidity pools. Mill City will acquire SUI tokens through open market purchases, institutional-grade deal flow, and negotiated agreements with the Sui Foundation. This approach leverages the company’s status as the sole Sui Foundation-backed treasury entity, aiming to accelerate the SUI ecosystem’s growth [3].

Market reaction to the announcement was immediate. Mill City’s stock surged 20% following the disclosure, reflecting investor confidence in the strategic pivot [5]. The offering, which closed on July 31, 2025, attracted participation from major crypto infrastructure firms such as Galaxy Digital (NASDAQ: GLXY) and Pantera Capital. Galaxy Asset Management will serve as the asset manager for the SUI treasury [3].

The move aligns with broader trends in institutional crypto adoption. Sui, developed by Mysten Labs, emphasizes scalability, speed, and AI compatibility. Stephen Mackintosh, co-founder of Karatage, highlighted Sui’s architecture as meeting institutional demands for “speed and efficiency” while maintaining security and decentralization [3]. The SUI token reached a high of $4.43 on July 28 before trading near $4.00, remaining close to its all-time high of $5.35 set in January [3].

The transaction is structured under exemptions from U.S. securities registration, with shares registered for resale post-closing. Legal counsel includes Sullivan & Worcester LLP and Loeb & Loeb LLP [3]. Mill City’s forward-looking statements caution against risks such as SUI’s market volatility, regulatory shifts, and operational execution challenges [3].

This strategy marks a pivotal moment for SUI, offering a liquid, publicly traded treasury vehicle. While the 98% allocation to a single asset introduces concentration risk, institutional backing and Sui’s technical roadmap position it as a focal point in blockchain development [1]. The initiative follows similar moves by entities like SharpLink Gaming, which emerged as a leading ETH treasury company, and reflects growing institutional interest in digital assets across Wall Street [2].

Source:

[1] [Mill City goes all-in on Sui with $450m treasury strategy](https://crypto.news/mill-city-goes-all-in-on-sui-with-450m-treasury-strategy/)

[2] [Nasdaq-listed Mill City Ventures announces $450M Sui ...](https://invezz.com/news/2025/07/28/nasdaq-listed-mill-city-ventures-announces-450m-sui-treasury-strategy/)

[3] [Mill City Secures $450M Private Placement for Sui ...](https://www.stocktitan.net/news/MCVT/mill-city-ventures-iii-ltd-announces-450-000-000-private-placement-kgv2txl3yma2.html)

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

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

[6] [Mill City stock soars after $450M placement for Sui crypto ...](https://au.investing.com/news/stock-market-news/mill-city-stock-soars-after-450m-placement-for-sui-crypto-treasury-93CH-3945340)