Mill City Ventures III, Ltd. (MCVT) announced a private placement to raise approximately $450 million. This capital will primarily fund the company's new Sui Treasury Strategy, with 98% of net proceeds allocated to acquiring SUI tokens. The offering involved the sale of 83,025,830 shares of common stock or equivalents at a price of $5.42 per share.
Karatage Opportunities, a London-based hedge fund specializing in digital assets, acted as the lead investor, alongside an equivalent investment from the Sui Foundation. Other prominent firms, including Galaxy Digital Inc. and Pantera Capital, also participated. This marks a profound strategic pivot for Mill City Ventures, reorienting its capital allocation.
Upon the closing of the private placement, Mill City Ventures will appoint new leadership to guide its digital asset strategy. Marius Barnett, Co-founder of Karatage, is expected to become Chairman of the Board of Directors. Stephen Mackintosh, also a Co-founder of Karatage, will serve as the company's Chief Investment Officer, directly overseeing the SUI treasury strategy.
Galaxy Asset Management will serve as the asset manager for the SUI treasury, providing expertise and operational infrastructure. This strategic shift positions Mill City Ventures as the sole publicly-traded company with an official Sui Foundation relationship. The company aims to provide institutional-grade exposure to the Sui blockchain, which it believes is well-positioned for large-scale adoption and AI workloads.
The company intends to acquire SUI tokens on the open market, through institutional-grade deal flow, and via a negotiated purchase and sale agreement with the Sui Foundation. This strategy creates a publicly traded structure with daily liquidity for SUI exposure. The legacy short-term lending business will continue to operate alongside this new digital asset focus.
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