Mill City Ventures III announced the successful completion of a $450 million share placement, enabling the company to pivot toward cryptocurrencies using a Sui-based treasury.
Financial Details of the Share Placement
Nasdaq-listed Mill City Ventures III conducted a significant share placement, raising approximately $450 million by selling 83 million shares to institutional investors. Participants in the placement included Pantera Capital, Electric Capital, ParaFi Capital, and other venture firms.
Strategy for Utilizing Raised Funds
The company plans to use 98% of the proceeds to acquire Sui tokens—the cryptocurrency associated with the layer-1 Sui blockchain. The remaining 2% will be kept for its existing short-term lending. Mill City Ventures claims to establish an 'industry-first' relationship with the Sui Foundation and to become the first public company with an SUI treasury.
Current Status of SUI and DeFi in the Sui Ecosystem
With growing interest in Sui, which aims for mass adoption, DeFi activity on the Sui platform has also surged. Total value in DeFi hit an all-time high of $2.22 billion, increasing nearly 400% since July 2024. However, the price of SUI has dropped by 11% in the past 24 hours, reflecting a general decline in the cryptocurrency market.
Mill City Ventures III's approach to launching the Sui treasury marks significant changes in the company's strategy. As cryptocurrencies and artificial intelligence continue to evolve, investments in Sui could represent a crucial step towards expanding its market share.
