Mill City Ventures raises $450 million

Mill City Ventures III, Ltd. (NASDAQ: MCVT), a specialty finance company, has successfully closed a $450 million private placement. This significant capital raise is part of a strategic pivot to establish a treasury strategy centered on the Sui blockchain and its native token, SUI.

Here are the key details of the private placement and the company’s new direction:

Fund Allocation: Mill City Ventures plans to use approximately 98% of the net proceeds—roughly $441 million—to acquire SUI tokens, which will become its primary treasury asset. The remaining 2% will be used to support its existing short-term lending business.

Investors: The funding round was led by Karatage Opportunities, a London-based digital asset hedge fund, with an equivalent investment from the Sui Foundation. Other notable participants include major crypto investors and firms like Galaxy Digital, Pantera Capital, Big Brain Holdings, and Electric Capital. Galaxy Asset Management will serve as the asset manager for the SUI holdings.

Leadership Changes: In conjunction with the new strategy, key leadership appointments have been made. Karatage co-founder Marius Barnett has been named Chairman of the Board, and his partner, Stephen Mackintosh, will serve as the new Chief Investment Officer.

Sui Blockchain Focus: By partnering with the Sui Foundation, Mill City Ventures is positioning itself as the only publicly-traded company with an official foundation-backed SUI treasury strategy. The company is betting on Sui’s technology, which is designed for scalability and speed to support a new generation of decentralized applications in areas like AI, gaming, and finance.

Market Impact: The news has already had a notable effect, with Mill City Ventures’ stock seeing a significant surge in the days following the announcement. The company’s new strategy aims to offer public market investors a liquid and institutional-grade way to gain exposure to the digital asset ecosystem.

Leadership Changes: In conjunction with the new strategy, key leadership appointments have been made. Karatage co-founder Marius Barnett has been named Chairman of the Board, and his partner, Stephen Mackintosh, will serve as the new Chief Investment Officer.