Mill City Ventures III Allocates 98% of $450M Raise to SUI Token Treasury Strategy

Mill City Ventures III, Ltd. (MCVT) has announced a $450 million private placement to fund a cryptocurrency treasury strategy centered on SUI tokens, the native asset of the Sui blockchain [1]. The offering involves 83,025,830 shares sold at $5.42 per share, with proceeds expected to close by July 31, 2025. Approximately 98% of the net proceeds will be allocated to acquiring SUI tokens, positioning them as the firm’s primary treasury reserve asset, while the remaining 2% will support its short-term lending operations [1]. Karatage Opportunities, a London-based hedge fund, led the investment alongside the Sui Foundation, with Galaxy Digital Inc., Pantera Capital, and Electric Capital among other participants. Galaxy Asset Management will act as the asset manager for the deployment of funds [1].

Stephen Mackintosh, co-founder of Karatage and the proposed chief investment officer, emphasized Sui’s potential for mass adoption, citing its institutional-grade speed and efficiency [1]. The firm plans to acquire SUI through open market purchases, institutional deals, and a negotiated agreement with the Sui Foundation [1]. Marius Barnett and Stephen Mackintosh will serve as chairman and chief investment officer, respectively, with Dana Wagner joining as an independent board director [1].

The SUI network, launched in 2023 by former Diem (Meta’s stablecoin project) team members, has gained traction for its modular architecture and high transaction throughput [2]. Mill City Ventures’ investment strategy targets SUI’s governance tokens, developer grants, and ecosystem incentives, aiming to accelerate adoption of layer-2 solutions and cross-chain interoperability features [2]. According to disclosures, 60% of the raised capital will fund on-chain infrastructure projects, 30% will support partnerships with SUI-based startups, and 10% will allocate to liquidity pools for the native token [2].

Analysts suggest the raise positions Mill City as a key player in the SUI ecosystem, potentially driving demand for the SUI token as the firm deploys its capital [2]. The move reflects a broader trend of venture capital firms shifting toward crypto-native strategies, particularly as regulatory clarity improves in certain markets. SUI’s integration with major exchanges and low gas fees have attracted developers and investors seeking alternatives to congested networks like Ethereum and Solana [2].

Mill City’s focus on SUI aligns with its thesis that modular blockchain frameworks—enabling customizable smart contract execution—will dominate next-phase crypto adoption [2]. While the investment carries risks, including regulatory shifts and competition from emerging chains, SUI’s existing user base and enterprise-grade security features are seen as mitigating factors [2]. The firm’s managing partner highlighted plans to pursue “strategic acquisitions of undervalued assets” within the SUI ecosystem, though specifics remain undisclosed [2].

The capital will be deployed over 18 months, with quarterly performance updates provided to investors [2]. Unlike speculative crypto strategies, Mill City’s approach prioritizes infrastructure development and developer support, a model historically linked to long-term value creation in blockchain ecosystems [2]. As the market matures, the firm’s SUI-focused strategy exemplifies a shift toward utility-driven projects over speculative token sales [2].

Source: [1] [Mill City Ventures raises $450 million for SUI cryptocurrency strategy] [https://www.investing.com/news/cryptocurrency-news/mill-city-ventures-raises-450-million-for-sui-cryptocurrency-strategy-432SI-4155104]

[2] [User-provided compiled analysis]