SUI Anchors $450M Treasury Strategy by Mill City Ventures

Mill City Ventures III, Ltd., a publicly traded specialty finance company, announced a $450 million private placement to fund a major shift in its treasury strategy. The firm will use 98% of the capital to acquire SUI, the native cryptocurrency of the Sui blockchain, making it the centerpiece of its treasury operations.

This move marks Mill City's formal entry into the crypto sector, following a broader industry trend of institutions adopting blockchain-native assets as reserve holdings. The funds will be deployed through open market purchases, negotiated deals, and a direct agreement with the Sui Foundation. The remaining 2% of the proceeds will support Mill City's short-term lending business.

Overview of the Private Placement

The offering includes the sale of 83,025,830 common shares at $5.42 each, with a projected close date of July 31, 2025. The capital raised is earmarked as follows:

• 98% allocated to acquire SUI tokens
• 2% reserved for existing short-term lending operations

The offering is led by Karatage Opportunities, a London-based hedge fund, with participation from Galaxy Digital Inc., Pantera Capital, Electric Capital, and others. Galaxy Asset Management will manage the fund deployment.

Dana Wagner has been appointed as an independent board director, joining Marius Barnett as chairman and Stephen Mackintosh as CIO.

Why SUI?

Mill City's leadership believes SUI meets key institutional standards, citing its speed, scalability, and compatibility with decentralized AI workloads. The blockchain was developed by former Meta (Diem) engineers and is recognized for its modular design and high throughput capabilities.

Incoming CIO Stephen Mackintosh emphasized:

“We believe that Sui is well positioned for mass adoption with the speed and efficiency institutions require for crypto at scale, plus the technical architecture capable of supporting AI workloads while maintaining security and decentralization.”

Implementation and Governance

The capital will be deployed across three core categories over 18 months:

• 60% for on-chain infrastructure and tooling
• 30% to support SUI-based startups and ecosystem partnerships
• 10% into SUI token liquidity pools

Investments will include developer grants, governance token allocations, and incentives for cross-chain compatibility. The company will issue quarterly updates to stakeholders.

Treasury Structure and Compliance

SUI will serve as Mill City's primary treasury reserve asset, with the firm planning acquisitions through:

• Open market purchases
• Institutional-grade private deals
• A negotiated agreement with the Sui Foundation

This structure introduces a rare publicly traded vehicle with exposure to foundation-backed SUI holdings and daily liquidity. The offering was structured under Regulation D and Section 4(a)(2) of the Securities Act of 1933. A registration statement will be filed with the SEC for resale of the private placement shares.

Strategic Goals and Market Outlook

Mill City believes utility-driven blockchain ecosystems are ready for broader adoption. By aligning with SUI, the firm intends to:

• Establish a crypto treasury model supported by a blockchain foundation
• Back infrastructure that supports both AI and stablecoin integrations
• Focus on modular blockchain design for customizable smart contract execution

SUI’s network has attracted developers and investors seeking alternatives to Ethereum and Solana due to its low fees and performance optimization.

Key Technical Context

• SUI launched in 2023 by former Meta engineers
• Known for Move-based smart contracts
• Focus on horizontal scaling and low-latency execution
• Offers high throughput suited for both DeFi and AI applications

FAQs

1. What is Mill City Ventures' $450 million private placement for?

   Mill City Ventures is raising $450 million to buy SUI tokens and support a new crypto-focused treasury strategy, with 98% of funds going toward SUI.

2. Why did Mill City choose SUI for its crypto strategy?

   SUI offers high transaction throughput, low fees, and scalability. It also supports AI workloads and has strong institutional support, making it a fit for Mill City's long-term goals.

3. When will the SUI token acquisition begin?

   The offering is expected to close by July 31, 2025, after which Mill City will begin deploying the capital over an 18-month period.

Conclusion

Mill City Ventures’ $450 million private placement places SUI at the center of its long-term crypto strategy. With nearly all funds dedicated to token acquisition and ecosystem growth, the company indicates a commitment to structured, utility-based crypto investment. Backed by both institutional and foundation support, this treasury model offers a fusion of public market access and blockchain-native asset management.

Resources:

1. MillCity Announcement: https://www.businesswire.com/news/home/20250728220301/en/Mill-City-Ventures-III-Ltd.-Announces-%24450000000-Private-Placement-to-Initiate-Sui-Treasury-Strategy

2. Sui Network Docs: https://docs.sui.io/

3. Mill City Ventures info: https://www.sec.gov/edgar/browse/?CIK=1425355&owner=exclude