TLDR:
- Mill City shifts focus to a $450M Sui crypto treasury strategy.
- Sui Foundation and Karatage jointly lead the private placement round.
- Galaxy, Pantera, Electric, and others back the first public SUI-heavy balance sheet.
- 98% of proceeds will go to SUI token buys, signaling major institutional demand.
A new crypto treasury play is taking shape. Mill City Ventures III is launching a $450 million Sui-focused strategy, and it’s not going unnoticed. Big names in crypto are buying in, and the structure could bring institutional-grade access to Sui’s network.
The move marks a shift for Mill City from short-term lending to a SUI-backed corporate treasury model. It also signals growing confidence in Sui as a blockchain built for real-world scale.
Hedge Fund Karatage and Sui Foundation Lead the Round
Mill City announced the deal on July 28. The private placement includes 83 million shares sold at $5.42 apiece.
London-based Karatage took the lead, matching its stake with an equal investment from the Sui Foundation. Karatage co-founders Marius Barnett and Stephen Mackintosh are stepping into key leadership roles. Barnett will chair the board, while Mackintosh will direct the treasury strategy.
The Sui Foundation also joins as a strategic ally. Their direct investment signals strong alignment. According to Mill City, nearly 98% of proceeds will go toward buying tokens, both on the open market and through exclusive deals. The remaining 2% will support its lending unit.
The placement brought in a long list of major firms. Participants include Galaxy Digital, Pantera Capital, Electric Capital, ParaFi, and Big Brain Holdings. Galaxy Asset Management will oversee asset management. Others like FalconX, GSR, and dao5 added to the funding wave.
Wu Blockchain noted the institutional weight behind the move. The Sui Foundation’s involvement creates what the company called a “foundation-supported crypto treasury strategy,” a first in the public markets. It will operate with daily liquidity and access to curated token flows normally reserved for private crypto funds.
Mill City Ventures III has announced a $450 million private placement to launch a corporate Sui treasury strategy. The round is led by London-based hedge fund Karatage, with a matching investment from the Sui Foundation. Other participants include Big Brain Holdings, Galaxy…
— Wu Blockchain (@WuBlockchain) July 28, 2025
AI, Crypto, and Scale Drive New Strategy
Speaking on the shift, Mill City’s incoming CIO Stephen Mackintosh said the timing was right. He pointed to convergence across crypto infrastructure and AI, both now reaching critical scale. Mackintosh believes Sui is built for that load, fast, efficient, and decentralized enough for heavy institutional use.
Christian Thompson from the Sui Foundation added that the project aims to support stablecoins, gaming, and finance at full scale. Mysten Labs co-founder Adeniyi Abiodun also commented, saying the chain is now ready for broader adoption and integration.
AlvaApp, a crypto analytics tool, flagged a potential supply squeeze. A large amount of the tokens could soon exit circulation. The result may be lower liquidity and sharper price swings. That’s catching the attention of traders, especially with total value locked still on the rise.
The deal is expected to close by July 31, pending final conditions. If it does, Mill City’s balance sheet will become one of the most SUI-heavy in public markets.
