Mill City Ventures III Allocates $441M to Sui Blockchain Treasury in Strategic Shift to Direct Crypto Investment

Nasdaq-listed Mill City Ventures III has allocated $441 million toward a Sui blockchain treasury, marking a strategic pivot from its traditional finance roots to direct cryptocurrency investment. The firm secured $450 million via a private placement of 83 million shares sold to institutional investors, including Pantera Capital, Electric Capital, and ParaFi Capital. Galaxy Asset Management will oversee the treasury, with 98% of proceeds designated for Sui (SUI) tokens, while retaining 2% for short-term lending operations [1]. This move establishes the first public company-backed SUI treasury and an “industry-first” collaboration with the Sui Foundation.

Stephen Mackintosh, incoming chief investment officer, emphasized the strategic timing, stating that “crypto and AI are reaching critical mass.” He highlighted Sui’s technical architecture as uniquely capable of scaling for institutional crypto adoption and supporting AI workloads, citing speed, security, and decentralization as key differentiators [1]. Adeniyi Abiodun of Mysten Labs, Sui’s developer, echoed this, calling Sui the “infrastructure that can handle real scale” for crypto, AI, and stablecoins [1].

The Sui ecosystem has experienced a surge in decentralized finance (DeFi) activity, with onchain value reaching a record $2.22 billion in late July 2025—a 400% increase since July 2024, per DefiLlama. Protocols like Suilend, NAVI, and Haedal collectively accounted for $1.7 billion in total value locked (TVL) after significant gains in the preceding month [1]. Despite this growth, SUI’s price fell 11% in the 24 hours following the announcement, aligning with broader altcoin market declines. The token, which reached an all-time high of $5.35 in January 2025, has since lost 27% of its value, reflecting ongoing market volatility [1].

The investment underscores a shift in traditional finance toward blockchain infrastructure. Sui’s focus on AI-compatible frameworks aligns with institutional interest in crypto’s role in next-generation applications. Christian Thompson of the Sui Foundation previously highlighted opportunities in merging AI agents with blockchain systems, a vision now supported by Mill City’s capital [1].

By committing nearly all proceeds to SUI tokens, Mill City signals a high-conviction bet on Sui’s ability to compete for institutional adoption and AI workloads. This contrasts with diversified blockchain treasuries, underscoring Sui’s competitive edge in DeFi growth. However, the recent price dip suggests traders remain cautious, with broader crypto market trends influencing sentiment. The success of this strategy will depend on Sui’s capacity to sustain DeFi activity and attract further institutional capital amid volatile conditions [1].

---

[1] Cointelegraph. (2025, July 20). Mill City Ventures Announces $450M Sui Treasury Amid Sui DeFi Surge. https://cointelegraph.com/news/mill-city-ventures-announces-450m-sui-treasury-amid-sui-defi-surge