Mill City Ventures shares surge over 20% after $450M private placement in Sui blockchain treasury strategy

Mill City Ventures III, Ltd. (NASDAQ: MCVT) shares surged over 20% on July 31 following the announcement of a $450 million private placement to establish a Sui blockchain treasury strategy. The Minnesota-based specialty finance firm will allocate 98% of proceeds to SUI token purchases via open-market transactions, private agreements, and deals with the Sui Foundation, marking a significant shift from its traditional lending operations. The remaining 2% will fund its conventional short-term lending business, maintaining a hybrid treasury approach [1].

The offering involves issuing 83,025,830 common shares at $5.42 per share, led by London-based Karatage Opportunities and supported by Galaxy Digital, Pantera Capital, and the Sui Foundation. Post-transaction, Karatage co-founder Marius Barnett will become Chairman, while Stephen Mackintosh, a Karatage General Partner, assumes the role of Chief Investment Officer. Mackintosh highlighted the convergence of institutional crypto adoption and AI innovation, noting Sui’s potential for mass adoption due to its high-speed decentralized application capabilities and Move programming language [1].

Sui, a Layer 1 blockchain competing with Ethereum, is designed for scalable smart contracts. Mill City’s strategy positions it as one of the first U.S.-listed companies to prioritize SUI tokens as a primary reserve asset, diverging from Bitcoin-centric models. A.G.P./Alliance Global Partners served as the exclusive placement agent under SEC registration exemptions. The 20% stock price increase reflects investor optimism about institutional-grade crypto exposure, aligning Mill City with a growing cohort of publicly traded firms bridging traditional finance and blockchain ecosystems [1].

While the strategy aligns with rising institutional interest in diversified blockchain exposure, analysts caution that cryptocurrency treasury strategies remain speculative. Karatage’s leadership and Sui’s technical architecture—emphasizing scalability and speed—underscore the transaction’s significance. Early Nasdaq-listed access to Sui’s treasury company, potentially available as early as July 28, could accelerate broader adoption, though regulatory scrutiny of crypto-related strategies remains a key variable for future performance [1].

The move reflects the maturing institutional crypto market, with Sui’s Layer 1 infrastructure positioning it as a challenger to established networks. Mill City’s aggressive allocation to SUI tokens underscores confidence in blockchain’s evolving role in corporate treasury management, even as volatility and regulatory uncertainty persist.

Source: [1] [title1] [https://www.cryptotimes.io/2025/07/29/mill-city-ventures-stock-jumps-20-following-450m-sui-treasury/]