Mill City Raises $450 Mln In Private Placement To Acquire SUI Tokens, Appoints New Leadership

(RTTNews) - Mill City Ventures III, Ltd. (MCVT), a specialty finance firm, has entered into securities purchase agreements for a $450 million private investment in public equity - PIPE.

The company will issue approximately 83 million shares at $5.42 each. Leading the investment are Karatage Opportunities, a digital asset-focused hedge fund, and the Sui Foundation, with further participation from Galaxy Digital, Pantera Capital, Electric Capital, and other major crypto investors. Galaxy Asset Management will serve as the asset manager.

Mill City plans to allocate about 98% of the proceeds to acquire SUI, the native token of the Sui blockchain, and use the remaining 2% to support its lending operations. The company aims to position SUI as its primary treasury reserve asset.

To support this strategic pivot, Mill City will appoint Karatage co-founder Marius Barnett as Chairman, Dana Wagner (former Square general counsel) as independent board director, and Karatage's Stephen Mackintosh as Chief Investment Officer.

The investment marks a significant move as Mill City transitions into a crypto treasury strategy backed by institutional-grade assets and a public structure offering daily liquidity.

Executives from Karatage, the Sui Foundation, and Mysten Labs highlighted the importance of Sui's infrastructure for scaling AI, stablecoins, and decentralized applications.

The offering is made under exemptions from SEC registration and includes plans to file a resale registration statement with the SEC.

Monday, MCVT closed at $5.94, up 0.68%, and rose a further 7.74% in after-hours trading to $6.40 on the NasdaqCM.