Mill City Ventures III Enters Crypto Market

Mill City Ventures III, a publicly traded specialty finance firm, is pivoting into the cryptocurrency space with a $450 million private placement to support a new treasury strategy centered around SUI, the native cryptocurrency of the Sui blockchain.

Allocation of Funds

According to a press release, roughly 98% of the funds will be utilized to purchase SUI on the open market and through direct agreements with the Sui Foundation. This strategic move positions SUI as Mill City’s primary treasury asset, while the remaining 2% will aid in maintaining the firm’s existing short-term lending operations.

Significance of the Investment

This investment is one of the largest allocations to SUI to date and aligns Mill City’s future with a blockchain specifically designed for high-throughput applications, which includes gaming, payments, and AI infrastructure.

Leadership Changes

Karatage Opportunities, a hedge fund focused on digital assets, led the funding round in collaboration with the Sui Foundation. Founders Marius Barnett and Stephen Mackintosh are set to take leadership roles at Mill City as board chairman and chief investment officer, respectively.

A Unique Strategy

This pivot effectively turns Mill City into a public vehicle for institutional exposure to SUI, which is a unique step within the publicly traded financial sector. The arrangement includes a foundation-backed strategy aimed at ensuring shared insights within the Sui ecosystem.

Conclusion

The deal is expected to close by the end of July, making Mill City one of the first publicly listed U.S. companies to adopt such a blockchain-native treasury strategy. As of now, SUI has seen a 1.7% decrease in value over the past 24 hours.