Mill City Ventures III, Ltd. (NASDAQ: MCVT) shares jumped more than 20% after the company announced a $450 million private placement to create a cryptocurrency treasury strategy focusing on the Sui blockchain.
The Minnesota-based specialty finance firm plans to allocate 98% of proceeds to SUI token purchases, marking a significant pivot from traditional lending operations. The remaining 2% will go toward funding its conventional short-term lending business.
The offering involves issuing 83,025,830 common shares at $5.42 per share, led by London-based Karatage Opportunities with participation from Galaxy Digital, Pantera Capital, and the Sui Foundation. Following the transaction’s July 31 closing, Karatage co-founder Marius Barnett will become Chairman while Stephen Mackintosh assumes the CIO role.
“This is a critical juncture when institutional crypto adoption and AI innovation are converging with tremendous potential in blockchain infrastructure,” said Mackintosh, who serves as General Partner at Karatage.
Sui Blockchain Strategy
Mill City will acquire SUI tokens through open-market purchases, private transactions, and direct agreements with the Sui Foundation. The strategy positions Mill City among the first U.S.-listed companies to adopt an alternative blockchain asset as a primary treasury reserve, moving beyond Bitcoin-focused corporate strategies.
Sui operates as a Layer 1 blockchain designed for high-speed decentralized applications using the Move programming language, competing with established networks like Ethereum and newer alternatives in the smart contract space.
A.G.P./Alliance Global Partners serves as the exclusive placement agent, with the offering taking place under exemptions from SEC registration rules.
The 20% stock price increase reflects investor optimism about Mill City’s aggressive foray into the crypto market. It brings the firm in the league of the increasing number of publicly listed treasury companies dedicated to blockchain assets, providing institutional investors with new entry points into new Web3 economies.
The strategy reflects growing institutional interest in diversified blockchain exposure beyond Bitcoin, though investors should consider the speculative nature of cryptocurrency treasury strategies and potential for significant losses.
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