Mill City Ventures Invests $450M in Sui Blockchain as Stock Rises 20% on Strategic Shift

Mill City Ventures, a Nasdaq-listed specialty finance firm, has allocated $450 million to establish a Sui blockchain treasury strategy, marking a significant pivot from traditional lending to digital asset-centric operations. The initiative, funded through a private placement of 83,025,830 common shares at $5.42 each, will see 98% of proceeds directed toward purchasing SUI tokens, the native cryptocurrency of the Sui network. This move positions the firm as the sole foundation-backed Sui treasury, with Karatage Opportunities, Galaxy Digital, Pantera Capital, and the Sui Foundation as key participants [1].

The strategy involves acquiring SUI tokens via open-market purchases, institutional-grade deals, and a negotiated agreement with the Sui Foundation. By leveraging Karatage’s network, Mill City aims to mitigate price slippage, a tactic more commonly used by crypto-native funds [4]. The firm retains 2% of the capital to support its existing short-term lending operations during the transition [2]. This approach aligns with Sui’s modular blockchain technology, which emphasizes high-throughput infrastructure and scalability—critical for institutional adoption and AI-driven smart contracts [5].

The Sui Foundation’s direct involvement adds a strategic advantage. Unlike typical corporate crypto holdings, Mill City’s treasury will gain access to shared data on network development, enhancing its ability to optimize capital allocation [6]. Stephen Mackintosh, incoming Chief Investment Officer and Karatage partner, highlighted Sui’s potential for mainstream adoption, citing its sub-second transaction finality and compatibility with institutional-grade AI workloads [1]. The partnership also reduces execution risk through institutional backing, amplifying credibility in a market wary of speculative crypto bets [7].

The private placement, structured under Regulation D exemptions, restricts U.S. participation to accredited investors. While limiting accessibility, this framework shields the firm from regulatory pressures faced by more widely distributed crypto securities. Post-closing, Mill City plans to file a resale registration statement with the SEC, potentially unlocking liquidity for institutional holders [4]. The stock price of Mill City Ventures III (NASDAQ: MCVT) surged up to 20% in the weeks following the announcement, reflecting market confidence in the strategic shift [3].

Analysts note that the scale of the investment places Mill City among the largest single blockchain treasury commitments this year, signaling growing acceptance of crypto-native strategies in traditional finance [7]. However, the lack of diversification raises concerns about exposure to SUI’s market volatility. Success will depend on Sui’s ability to maintain developer activity and deliver on scalability promises—challenges faced by many blockchain projects in 2025 [9]. The firm’s exclusive status as a Sui-supported treasury grants privileged ecosystem insights, potentially creating a competitive edge in capital allocation [5].

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[1] [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)

[2] [Mill City Ventures shares pop on $450M Sui treasury plan](https://www.proactiveinvestors.com/companies/news/1075568/mill-city-ventures-shares-pop-on-450m-sui-treasury-plan-1075568.html)

[3] [Mill City stock soars after $450M placement for Sui crypto treasury](https://www.investing.com/news/stock-market-news/mill-city-stock-soars-after-450m-placement-for-sui-crypto-treasury-93CH-4155245)

[4] [Mill City Secures $450M for Sui-Centric Crypto Treasury](https://www.ainvest.com/news/mill-city-secures-450m-sui-centric-crypto-treasury-strategy-led-karatage-sui-foundation-2507/)

[5] [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/)

[6] [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)

[7] [Mill City Secures $450M for Sui-Centric Crypto Treasury](https://www.ainvest.com/news/mill-city-secures-450m-sui-centric-crypto-treasury-strategy-led-karatage-sui-foundation-2507/)

[9] [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/)