Stock skyrockets by 353% following announcement of innovative SUI Treasury strategy by the company.
Mill City Ventures Embraces Sui Blockchain for Corporate Treasury
Mill City Ventures, a Minnesota-based specialty finance firm, has announced a groundbreaking treasury strategy that positions the Sui blockchain's native token (SUI) as its primary treasury reserve asset. The company aims to raise $450 million through a private placement, with 98% of the net proceeds earmarked for acquiring SUI tokens [1][2][3].
This strategic shift marks a significant departure from traditional reserve assets like cash or Bitcoin, as Mill City Ventures will be among the first publicly listed U.S. companies to base its corporate treasury around an altcoin. The choice of Sui is driven by its technical strengths, including ultra-fast, secure, and cost-effective decentralized app support enabled by the Move programming language, positioning Sui as a challenger to leading smart contract platforms like Ethereum [2].
Key aspects of the strategy include:
- A treasury reserve focus on SUI tokens, supported by the Sui Foundation, which shares information on technology and ecosystem growth.
- Leadership changes post-close, with Marius Barnett becoming Chairman and Stephen Mackintosh (co-founder of Karatage Opportunities) appointed as Chief Investment Officer to oversee the SUI treasury strategy [2][4].
- The $450 million raise comes from selling over 83 million common shares at $5.42 each, led by crypto-focused institutional investors such as Karatage Opportunities, Galaxy Digital, Pantera Capital, and Electric Capital [1][2].
- Strategic benefits anticipated from blockchain's transparency, cost reduction, automation via smart contracts, enhanced security, and greater liquidity via tokenization of assets, which align with Mill City's background in specialty finance and lending [3].
Stephen Mackintosh, a general partner at Karatage, will serve as Mill City Ventures' chief investment officer, leading this innovative treasury strategy. The private placement involves selling 83,025,830 shares of common stock at $5.42 per share. Most of the funds raised will be used to establish a Sui cryptocurrency treasury strategy [1][2].
Shares of Mill City Ventures (MCVT) closed at $1.85 on Thursday, but trading began to surge on Friday, reaching a high of $7.99 on Monday. Karatage believes that Sui is well positioned for mass adoption due to its speed, efficiency, and technical architecture [1].
Meanwhile, in other news, Queens Park Rangers and TokenFi announce a new partnership, Pepescape Crypto Presale raises $1M, VeraNet launches a decentralized AI ecosystem, and Ethereum co-founder Joseph Lubin discusses ETH's lag behind for years [5]. Additionally, DeepSnitch introduces five specialized AI agents, STON.fi Dev raises $9.5M Series A, and an analyst predicts rallies for XRP, ADA, DOGE, and two additional altcoins amid $74,500,000,000 capital inflows into crypto [6]. Lastly, Naoris Protocol announces an upcoming Token Generation Event for NAORIS, and JPMorgan Chase is considering allowing clients to borrow against their crypto assets [7].
References: 1. BusinessWire 2. Decrypt 3. Yahoo Finance 4. CoinDesk 5. Cointelegraph 6. CoinMarketCap 7. Bloomberg
- Mill City Ventures, a Minnesota-based finance firm, is venturing into the cryptocurrency market by adopting Sui blockchain's native token (SUI) as its primary treasury asset, marking a shift from traditional reserve assets like cash or Bitcoin.
- Stephen Mackintosh, a general partner at Karatage, will spearhead this innovative treasury strategy as the Chief Investment Officer at Mill City Ventures, with a significant portion of the raised funds being dedicated to establishing a Sui cryptocurrency treasury strategy.
- The choice of Sui, an altcoin, over more established cryptocurrencies like Bitcoin, is driven by its potential for mass adoption, thanks to its speed, efficiency, and technical architecture.
