Mill City Ventures III Allocates $450M to SUI Treasury 98% Allocation Sparks 218.92% Price Surge

Mill City Ventures III, Ltd. has completed a $450 million private placement to establish a Sui Treasury Strategy, marking a significant pivot in its capital allocation approach. The firm, known for short-term non-bank lending, will now deploy 98% of the net proceeds toward acquiring SUI, the native token of the Sui blockchain platform [1]. The remaining 2% will fund its existing short-term lending operations. The placement, led by Karatage Opportunities—a London-based hedge fund specializing in digital assets—was supported by institutional investors including Galaxy Digital, Pantera Capital, and M2, among others [2]. Karatage’s co-founders, Marius Barnett and Stephen Mackintosh, will join the board as chairman and chief investment officer, respectively [3].

The transaction involves the purchase of 83,025,830 shares at $5.42 per share, generating approximately $450 million in gross proceeds before fees and expenses. SUI will serve as the company’s primary treasury reserve asset, aligning its balance sheet with the Sui ecosystem. This move reflects growing institutional interest in blockchain-native assets, with the Sui Foundation describing the partnership as an “industry-first” collaboration offering institutional-grade access to a blockchain designed for mass adoption [2].

Stephen Mackintosh, co-founder of Karatage, emphasized the strategic timing of the initiative, noting the confluence of institutional crypto adoption and AI advancements. “Sui’s architecture supports the scalability and security institutions require for large-scale crypto use cases and AI workloads,” he stated [3]. Christian Thompson of the Sui Foundation highlighted the platform’s focus on scalability, speed, and security, positioning it to support decentralized applications, stablecoins, and enterprise solutions [2].

The offering, expected to close on July 31, 2025, has already driven a 218.92% surge in SUI’s price, reflecting market enthusiasm for the reallocation of institutional capital [3]. However, the strategy carries risks tied to SUI’s volatility and regulatory environment. Mill City’s decision to allocate nearly all proceeds to a single asset contrasts with its prior diversification into high-yield credit instruments. While the firm retains 2% of the placement for liquidity, its long-term success will depend on Sui’s ability to sustain network activity, developer engagement, and compliance with evolving regulations.

The transaction underscores a broader trend in crypto asset management, where firms increasingly prioritize blockchain-native investments for liquidity and value generation. Mill City’s Sui Treasury Strategy, supported by a robust investor base, positions it to capitalize on Sui’s governance model and staking mechanisms. The firm’s alignment with SUI also signals confidence in its technical architecture, which combines efficiency with decentralization to support AI and enterprise use cases.

The press release is sponsored, with views expressed not necessarily representing those of ZyCrypto. Readers are advised to conduct independent research before taking action.

Sources:

[1] [title1Mill City Ventures III, Ltd. Announces $450,000,000 Private Placement to Initiate Sui Treasury Strategy] [url1https://www.businesswire.com/news/home/20250728220301/en/Mill-City-Ventures-III-Ltd.-Announces-%24450000000-Private-Placement-to-Initiate-Sui-Treasury-Strategy]

[2] [title2Finance company Mill City set to secure $450 million ...] [url2https://cryptobriefing.com/sui-treasury-strategy-mill-city/]

[3] [title3Mill City Ventures III Allocates 98% of $450M Private ...] [url3https://www.ainvest.com/news/mill-city-ventures-iii-allocates-98-450m-private-placement-sui-shares-surge-218-92-2507/]