The shares of Mill City Ventures (MCVT) are surging as the Nasdaq-listed specialty finance firm reveals a new treasury strategy using layer-1 protocol Sui (SUI).
In an announcement, Minnesota-based Mill City Ventures says it will raise $450 million in a non-public offering, or private placement, and use most of the funds to establish a Sui cryptocurrency treasury strategy.
[adinserter block="1"]Crypto treasury companies are publicly traded or private companies that hold digital assets on their balance sheets as part of their treasury reserve strategy.
Shares of MCTV closed Thursday at $1.85. Trading began to surge on Friday, when the stock closed at $5.90. On Monday, shares reached a high of $7.99 and are trading for $6.80 at time of writing.
The private placement involves selling 83,025,830 shares of common stock at $5.42 per share.
London-based Karatage Opportunities, a digital assets-focused hedge fund, led the funding round with equivalent investment from the Sui Foundation.
Says Stephen Mackintosh, a general partner at Karatage who now plans to serve as Mill City Ventures’ chief investment officer,
“We’re launching at a pivotal moment when both institutional crypto and AI are reaching critical mass – creating significant opportunities across blockchain infrastructure. 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 while maintaining security and decentralization.”
Mill City plans to acquire SUI on the open market as well as through a sales agreement with the Sui Foundation.
SUI is trading for $4.05 at time of writing, down 5.7% in the last 24 hours.
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