Nasdaq-Listed Mill City Ventures Raises $450M to Pivot Into Crypto with Sui Treasury

Mill City Ventures III, a Nasdaq-listed non-bank lender based in Minneapolis, has raised $450 million in a private placement to overhaul its business model and establish a cryptocurrency treasury focused on Sui, the native token of the Sui blockchain.

Key Takeaways

• Mill City Ventures raised $450M to build the first public Sui token treasury.
• 98% of the funds will be used to acquire SUI tokens, with Galaxy Asset Management overseeing the treasury.
• Despite the strategic move, SUI’s price fell 11% amid a broader altcoin market downturn.
The firm disclosed on Monday that it sold 83 million shares to institutional investors, securing capital commitments from prominent crypto backers including Pantera Capital, Electric Capital, ParaFi Capital, Arrington Capital, and FalconX. Galaxy Asset Management has been appointed to manage the new treasury.

Mill City Allocates 98% of $450M Raise to Build First Public Sui Treasury

Approximately 98% of the raised funds will be used to purchase SUI tokens, marking what Mill City describes as the first public company Sui treasury. The remaining 2% will support its legacy short-term lending operations. Stephen Mackintosh, the firm’s incoming chief investment officer, framed the move as a bet on the convergence of crypto and artificial intelligence (AI):

“We believe that Sui is well-positioned for mass adoption with the speed and efficiency institutions require for crypto at scale, plus the technical architecture capable of supporting AI workloads.”

Mysten Labs co-founder Adeniyi Abiodun echoed this sentiment, calling Sui the infrastructure of choice for crypto, AI, and stablecoins at scale. The Sui ecosystem has experienced rapid growth in recent months, particularly in decentralized finance (DeFi). Total value locked (TVL) across its protocols reached an all-time high of $2.22 billion over the weekend, up nearly 400% since July 2024, according to DefiLlama. Leading protocols such as Suilend, NAVI, and Haedal currently account for $1.7 billion of that TVL.

Galaxy is investing and managing the treasury for Mill City Ventures III, Ltd., following a $450M private placement to initiate a $SUI treasury strategy.

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Backed by a broad group of institutional investors, including the @SuiFoundation, @Karatage, and others.

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— Galaxy (@galaxyhq) July 28, 2025

Despite the strategic shift and institutional support, the market response has been muted. SUI dropped 11% over the past 24 hours amid a broader altcoin selloff. The token, which reached an all-time high of $5.35 in January, is now down 27% from its peak.

Crypto Treasuries Aren’t Really Buying Crypto

A growing number of publicly traded companies are raising hundreds of millions of dollars to build crypto treasuries, but some analysts suggest many aren’t actually buying digital assets from the open market. Crypto analyst Ran Neuner has claimed that crypto treasury firms often act less like buyers and more like exit vehicles for crypto insiders. Instead of purchasing assets directly from exchanges, these companies frequently receive crypto contributions from existing holders in exchange for shares that later trade at significant premiums on public markets. Skepticism around the sustainability of the crypto treasury trend is also growing. Last month, Glassnode lead analyst James Check raised concerns over the longevity of the corporate Bitcoin treasury strategy, arguing that easy gains might already be gone for new entrants as the market matures. Similarly, Matthew Sigel, head of digital asset research at VanEck, has voiced concerns over the Bitcoin treasury strategies adopted by some publicly traded firms.

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Frequently Asked Questions (FAQ)

Mill City Ventures and Sui Treasury

Q: What is Mill City Ventures III? A: Mill City Ventures III is a Nasdaq-listed non-bank lender based in Minneapolis. Q: What is the primary goal of Mill City Ventures' $450 million raise? A: The primary goal is to pivot its business model and establish a cryptocurrency treasury focused on Sui, the native token of the Sui blockchain. Q: How much of the raised capital will be used for SUI tokens? A: Approximately 98% of the $450 million raised will be used to acquire SUI tokens. Q: Who will manage the new Sui treasury? A: Galaxy Asset Management has been appointed to manage the new treasury. Q: Why is Mill City Ventures focusing on Sui? A: Mill City Ventures believes Sui is well-positioned for mass adoption due to its speed, efficiency, and technical architecture capable of supporting AI workloads. Q: What has been the market reaction to this news? A: The market reaction has been muted, with SUI's price falling 11% amid a broader altcoin market downturn.

Crypto Treasuries and Market Trends

Q: What is the broader trend regarding corporate crypto treasuries? A: A growing number of publicly traded companies are raising significant capital to establish crypto treasuries. Q: What is the concern about corporate crypto treasuries? A: Some analysts suggest that many of these companies may not be directly buying digital assets from the open market, but rather acting as exit vehicles for insiders. Q: What are the sustainability concerns for corporate crypto treasuries? A: Concerns exist about the longevity of such strategies, with some analysts believing that the easy gains are diminishing as the market matures.

Crypto Market AI's Take

This development highlights a growing trend where traditional financial entities are increasingly exploring and integrating cryptocurrency into their core operations, specifically focusing on blockchain infrastructure like Sui that can support emerging technologies like AI. At Crypto Market AI, we continuously analyze these shifts, leveraging our advanced AI trading bots and market intelligence to provide insights into such strategic moves. The convergence of AI and blockchain, as envisioned by Mill City Ventures, is a key area of focus for our platform, as we believe it represents a significant future for financial innovation.

More to Read:

• AI-Powered Crypto Trading Tools Reshape Market Strategies
• Understanding the Sui Blockchain Ecosystem
• The Future of AI in Decentralized Finance

Source: Cryptonews — Published on July 29, 2025