Mill City Ventures raises $450M for SUI Treasury Strategy 98% to SUI 2% to lending Karatage leads

Mill City Ventures III, Ltd. (NASDAQ: MCVT), a non-bank lending institution and financial services provider, has announced a $450 million private placement to execute the SUI Treasury Strategy. The offering involves the issuance of 83,025,830 common shares at $5.42 per share, with proceeds excluding placement agent fees and other expenses. Hedge fund Karatage has committed as the lead investor, while the Sui Foundation will provide a matching investment. The transaction, expected to close by July 31, 2025, will allocate approximately 98% of net proceeds to acquire SUI, the native token of the Sui blockchain, and 2% to bolster the company’s short-term lending operations. SUI will become the firm’s primary financial reserve asset [1].

The fundraising underscores a strategic pivot toward blockchain-based assets, aligning with the broader trend of institutional investors diversifying portfolios with digital reserves. By designating SUI as its core reserve, Mill City Ventures positions itself to leverage the Sui blockchain’s capabilities, including its focus on decentralized applications and tokenized assets. The decision to allocate nearly all proceeds to SUI reflects confidence in the token’s utility and growth potential, while the minor allocation to lending operations suggests a dual strategy of capital preservation and income generation.

The partnership with Karatage and the Sui Foundation highlights the importance of collaborative investment in the blockchain sector. Karatage’s role as lead investor signals a vote of confidence in the firm’s treasury strategy, whereas the Sui Foundation’s matching commitment reinforces the token’s institutional credibility. The offering’s structure—private placement with a fixed per-share price—indicates a focus on stable, long-term capital rather than volatile public market exposure.

The move aligns with regulatory and market shifts favoring digital assets as collateral or reserves. By holding SUI, the company gains exposure to a blockchain platform optimized for high-throughput transactions and developer-friendly tools, potentially enhancing liquidity and operational efficiency. However, the strategy’s success hinges on SUI’s performance, as well as broader market conditions for blockchain-based assets. The 2% allocation to short-term lending mitigates direct exposure to token price volatility while maintaining operational flexibility.

The SUI Treasury Strategy marks a significant milestone for Mill City Ventures, reflecting its transition from traditional lending to a diversified financial model. The firm’s decision to prioritize SUI over other assets underscores its assessment of the token’s strategic value, though the long-term impact will depend on the Sui ecosystem’s adoption and regulatory developments in the digital asset space.

Source: [1] [Mill City Ventures III, Ltd. has announced a $450 million private fundraising to launch the SUI Treasury Strategy] [https://www.theblockbeats.info/en/flash/304844]