Mill City Announces $450 Million Offering to Purchase SUI Tokens

Mill City and SUI Reserve Strategy

Minnesota-based specialty finance company Mill City Ventures III, Ltd. (NASDAQ: MCVT) provides short-term lending and structured finance to high-net-worth individuals and small businesses with long-term horizons. With a market capitalization of approximately $40 million, Mill City is now focusing on the blockchain sector as a strategic choice. Sui, a Layer-1 blockchain developed by Mysten Labs, is designed to support next-generation decentralized applications (DApps), such as decentralized finance (DeFi), gaming, and artificial intelligence (AI).

Mill City announced that it has entered into securities purchase agreements to raise $450 million by issuing 83,025,830 common shares at a price of $5.42 per share on July 28, 1925. Karatage Opportunities, a London-based hedge fund specializing in digital assets, is supporting the Sui Foundation and major investors including Galaxy Digital, Pantera Capital, and Electric Capital. The transaction is expected to close on or about July 31, 2025. 98% of the proceeds, equivalent to $441 million, will be allocated to purchase SUI tokens on the open market and through a direct agreement with the SUI Council. The remaining 2% will continue to support the company's regular short-term lending.

Challenges facing Mill City

Accumulating SUI in Mill City can bring significant financial benefits through staking or providing liquidity on decentralized finance protocols. Depending on the strategy, there can be a yield of 5–10% per year. This helps businesses diversify their income and relieve pressure on short-term lending due to high interest rates. Furthermore, the partnership with the Sui Foundation and the backing of well-known investment funds can bring opportunities for cooperation with other financial institutions, raising Mill City's profile.

If the positive sentiment continues, this move could increase demand for SUI, pushing the token price higher from $4.10, down 3.4% in the past 24 hours. With a market capitalization of $14.2 billion and a 24-hour trading volume of $2.2 billion, SUI is attracting attention as a Layer-1 candidate to compete with Ethereum. Mill City's involvement could encourage other businesses to follow suit, fueling the trend of accumulating altcoins in their treasuries.

Evaluation and Conclusion

Mill City Ventures III’s announcement of a $450 million offering to establish a corporate treasury for Sui is a strategic move that reflects the institutionalization of the cryptocurrency industry and the convergence of traditional finance and blockchain. With the potential to increase asset value and expand influence, Mill City has the opportunity to reshape its position while the Sui market benefits from growing acceptance.

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