Key Takeaways
- • Mill City Ventures III (NASDAQ: MCVT) closed a $450,000,000 private investment in public equity (PIPE) and has begun implementing a Sui blockchain treasury strategy, according to a Business Wire release.
- • Mill City now holds 76,271,187 SUI tokens at an average price of $3.6389 per token, acquired through an OTC agreement with the Sui Foundation and contributions in kind.
- • Karatage Opportunities, a London-based digital asset hedge fund co-founded by Marius Barnett and Stephen Mackintosh, served as lead investor alongside an equivalent investment from the Sui Foundation.
- • Barnett was appointed Chairman of the Board and Mackintosh became Chief Investment Officer; Galaxy Asset Management will serve as Asset Manager.
- • Approximately 98% of net proceeds will go to SUI acquisition and treasury management, with Mill City continuing its short-term lending and structured finance operations.
Summary
Mill City Ventures III, Ltd. (NASDAQ: MCVT) announced the successful closing of its $450,000,000 private investment in public equity and the start of its Sui blockchain treasury strategy, which the company describes as industry-first. The company says it is now the first publicly traded SUI treasury with backing from the Sui Foundation, an independent organization focused on the Sui network's advancement.
Karatage Opportunities, the London-based proprietary hedge fund specializing in digital assets and emerging technology, acted as lead investor with an equivalent investment from the Sui Foundation. Karatage was founded by Marius Barnett and Stephen Mackintosh, who have been appointed Chairman of the Board and Chief Investment Officer of Mill City, respectively. Other investors named in the release include Big Brain Holdings, Galaxy Digital Inc (Nasdaq: GLXY), Dr. Jack Kong of NLABS Fund, Pantera Capital, ParaFi Capital, Electric Capital, FalconX, and Arrington Capital, among others. Galaxy Asset Management will serve as Asset Manager, and A.G.P./Alliance Global Partners acted as sole placement agent.
Mill City now holds 76,271,187 SUI tokens, acquired at an average price of $3.6389 per token. Initial purchases were made through an OTC purchase and sale agreement with the Sui Foundation and through contributions in kind. Retail and institutional investors can access the treasury through a publicly traded wrapper offering daily liquidity. The company intends to keep accumulating SUI on the open market and expects to provide regular updates on its holdings and treasury performance, with the stated goal of building the largest institutionally managed SUI position in public markets.
Approximately 98% of the private placement net proceeds will be dedicated to SUI acquisition and treasury management. Mill City will also continue its short-term lending and structured finance activities. Mike Novogratz, Founder and CEO of Galaxy, said the structure offers public market investors a liquid, institutional-grade route to digital asset exposure. Mysten Labs co-founder and Chief Product Officer Adeniyi Abiodun described the backing as validation of Sui's architecture.
The release notes that forward-looking statements carry risks, including fluctuations in SUI's market price, potential impairment charges, the possibility that SUI is classified as a security, and the risk that Mill City is deemed an investment company due to its SUI holdings.
Karatage Opportunities, the London-based proprietary hedge fund specializing in digital assets and emerging technology, acted as lead investor with an equivalent investment from the Sui Foundation. Karatage was founded by Marius Barnett and Stephen Mackintosh, who have been appointed Chairman of the Board and Chief Investment Officer of Mill City, respectively. Other investors named in the release include Big Brain Holdings, Galaxy Digital Inc (Nasdaq: GLXY), Dr. Jack Kong of NLABS Fund, Pantera Capital, ParaFi Capital, Electric Capital, FalconX, and Arrington Capital, among others. Galaxy Asset Management will serve as Asset Manager, and A.G.P./Alliance Global Partners acted as sole placement agent.
Mill City now holds 76,271,187 SUI tokens, acquired at an average price of $3.6389 per token. Initial purchases were made through an OTC purchase and sale agreement with the Sui Foundation and through contributions in kind. Retail and institutional investors can access the treasury through a publicly traded wrapper offering daily liquidity. The company intends to keep accumulating SUI on the open market and expects to provide regular updates on its holdings and treasury performance, with the stated goal of building the largest institutionally managed SUI position in public markets.
Approximately 98% of the private placement net proceeds will be dedicated to SUI acquisition and treasury management. Mill City will also continue its short-term lending and structured finance activities. Mike Novogratz, Founder and CEO of Galaxy, said the structure offers public market investors a liquid, institutional-grade route to digital asset exposure. Mysten Labs co-founder and Chief Product Officer Adeniyi Abiodun described the backing as validation of Sui's architecture.
The release notes that forward-looking statements carry risks, including fluctuations in SUI's market price, potential impairment charges, the possibility that SUI is classified as a security, and the risk that Mill City is deemed an investment company due to its SUI holdings.
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