Mill City Ventures closes $450 million investment for Sui blockchain treasury

Published 01/08/2025, 11:46
Mill City Ventures closes $450 million investment for Sui blockchain treasury

NEW YORK - Mill City Ventures III, Ltd. (NASDAQ:MCVT) has closed a $450 million private investment to implement what it describes as an industry-first Sui blockchain treasury strategy, according to a company press release.

The investment was led by London-based Karatage Opportunities, a proprietary hedge fund specializing in digital assets, with an equivalent investment from the Sui Foundation. Following the transaction, Karatage co-founders Marius Barnett and Stephen Mackintosh have been appointed as Chairman of the Board and Chief Investment Officer of Mill City, respectively.

The investor group included Galaxy Digital Inc (NASDAQ:GLXY), Pantera Capital, Electric Capital, and numerous other investment firms. Galaxy Digital, currently valued at $10.6 billion and trading at $28.36, has demonstrated strong performance with a 57.26% year-to-date return. According to InvestingPro data, analysts maintain a Strong Buy consensus on the stock. Galaxy Asset Management will serve as the Asset Manager, while A.G.P./Alliance Global Partners acted as the sole placement agent.

Mill City now holds 76,271,187 SUI tokens in its treasury, acquired at an average price of $3.6389 per token. The company plans to continue purchasing additional tokens on the open market.

"Not all crypto treasury strategies are created equal, and we believe that Mill City Ventures is building something truly different with Sui," said Stephen Mackintosh in the announcement.

The company stated it will dedicate approximately 98% of the private placement net proceeds to SUI acquisition and treasury management, while continuing its short-term lending and structured finance solutions.

Sui is a blockchain platform developed by former Meta technologists who previously worked on the company’s Diem stablecoin project. The platform is designed to provide scalability, speed, and security for decentralized applications.

Mill City describes itself as the sole publicly-traded company with an official Sui Foundation relationship, providing institutional-grade exposure to the Sui blockchain. For deeper insights into Galaxy Digital’s financial health and growth prospects, InvestingPro subscribers can access comprehensive analysis, including 15+ additional ProTips and detailed valuation metrics in the Pro Research Report.

In other recent news, Galaxy Digital has seen several significant developments. Maxim Group initiated coverage on the company with a Buy rating and set a price target of $40.00, highlighting Galaxy Digital’s shift from bitcoin mining to AI data centers. In contrast, Goldman Sachs started its coverage with a Neutral rating and a $30.00 price target, describing Galaxy Digital as a "business in transition." Additionally, Galaxy Digital has expanded its GK8 digital asset custody platform to include the Solana blockchain, enabling secure institutional access to Solana-based decentralized finance protocols. The company has also strengthened its board of directors by appointing Doug Deason as an independent director, increasing the total number of directors to seven. Deason will serve on the board until the 2026 annual meeting or until a successor is elected. These recent developments reflect Galaxy Digital’s evolving strategy and growing institutional focus in the digital asset industry.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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