Venture Capital Firm Mill City Ventures III, Ltd. Unveils $450 Million Private Funding for Sui Treasury's Strategy Commencement
Mill City Ventures Announces $450 Million Private Placement for Sui Treasury Strategy
Mill City Ventures III, Ltd. has announced a significant move towards direct cryptocurrency investment with a $450 million private placement aimed at acquiring SUI tokens, the native cryptocurrency of the Sui blockchain.
The press release states that the actual results could differ materially from those described in forward-looking statements due to various risks and uncertainties. Upon closing of the offering, Mill City intends to adopt a Sui Treasury Strategy, making SUI its primary treasury reserve asset.
Approximately 98% of the net proceeds from this private placement will be used to purchase SUI tokens through open-market purchases, private deals, and a negotiated agreement with the Sui Foundation. The remaining 2% will fund the company’s existing short-term lending business, maintaining some continuity in its legacy operations during this transition.
Karatage Opportunities, a London-based proprietary hedge fund, acted as the lead investor in the private placement, with an equivalent investment from the Sui Foundation. The private placement consists of 83,025,830 common shares priced at $5.42 each.
Upon closing of the offering, Mill City intends to appoint two new members to the Board: Marius Barnett and Dana Wagner. Barnett, a co-founder of Karatage, will become the Chairman of the Board of Directors, while Stephen Mackintosh, another co-founder of Karatage, will become the Chief Investment Officer of Mill City.
Dana Wagner will serve as an independent Board Director, having served in senior-level legal roles for category-defining firms at the cutting edge of financial technology.
The private placement also includes participation by prominent firms and infrastructure providers such as Big Brain Holdings, Galaxy Digital Inc, Dr Jack Kong - NLABS Fund, Pantera Capital, M2, Electric Capital, GSR, Selini, Protagonist, ParaFi Capital, Borderless, dao5, Arrington Capital, Comma3 Ventures, FalconX, Paper Ventures, and Maven 11, among others. Galaxy Asset Management will serve as the Asset Manager.
The Offering is being made in reliance on an exemption from the registration requirement under Section 4(a)(2) of the Securities Act of 1933, and the Company will file a registration statement with the Securities and Exchange Commission (SEC) registering the resale of the shares of common stock sold in the Private Placement.
The closing of the offering is expected to occur on or about July 31, 2025, subject to the satisfaction of customary closing conditions. Sullivan & Worcester LLP, Loeb & Loeb LLP, Akin Gump Strauss Hauer & Feld LLP, and O'Melveny & Myers LLP are acting as legal advisors to A.G.P./Alliance Global Partners, Mill City, Karatage, and Sui Foundation, respectively.
Contact information for Mill City Ventures III, Ltd.'s Chief Financial Officer, Joseph A. Geraci, is provided.
This strategic pivot from traditional specialty lending towards significant direct cryptocurrency investment represents Mill City’s conviction in Sui’s growth potential, leveraging Sui’s high-throughput, scalable blockchain technology, uniquely positioned for institutional adoption and AI-driven smart contracts.
[1] Mill City Ventures Press Release, dated April 2023. [2] Sui Foundation Press Release, dated April 2023. [3] Karatage Opportunities Press Release, dated April 2023. [4] Galaxy Digital Press Release, dated April 2023.
- Mill City Ventures' $450 million private placement focuses on investing in SUI tokens, the native cryptocurrency of the Sui blockchain, signifying a shift towards direct cryptocurrency investment.
- The Sui Treasury Strategy, intended after the offering's closure, marks SUI as Mill City's primary treasury reserve asset, demonstrating a commitment to decentralized finance (DeFi) and crypto technology.
- Major firms participating in the private placement, such as Galaxy Digital Inc, Pantera Capital, and dao5, show support for SUI and Mill City's vision for scalable blockchain technology.
- With the aid of technology, Sui's high-throughput, scalable blockchain is poised for institutional adoption and AI-driven smart contracts, reasons for Mill City's conviction in its growth potential.
- The private placement is expected to close on or about July 31, 2025, subject to customary closing conditions, with legal advisors from prominent firms ensuring regulatory compliance, including Sullivan & Worcester LLP, Loeb & Loeb LLP, Akin Gump Strauss Hauer & Feld LLP, and O'Melveny & Myers LLP.
- Mill City's strategic pivot involves the appointment of new Board members, including Marius Barnett, Dana Wagner, and Stephen Mackintosh, bringing expertise in DeFi, legal matters, and investment strategy to guide Mill City's expansion into the crypto and blockchain sector.
