Mill City Ventures (NASDAQ:MCVT) shares surged after the specialty finance company announced a $450 million private placement to support its adoption of a treasury strategy centered on the Sui blockchain's native cryptocurrency, Sui.
The company plans to use approximately 98% of the net proceeds to acquire Sui tokens, which will serve as its primary treasury reserve asset.
The remaining 2% will continue to support Mill City's existing short-term lending business, as it transitions toward significant blockchain investment.
The company highlighted that it will be the only company with a Sui treasury supported by the Sui Foundation, which will provide shared information on Sui's technology and ecosystem growth.
Mill City intends to acquire Sui tokens through open market purchases, institutional-grade deal flow, and a negotiated purchase agreement with the Sui Foundation
The $450 million placement involves selling more than 83 million shares of common stock at $5.42 per share, led by Karatage Opportunities, a London-based hedge fund specializing in digital assets, and the Sui Foundation.
Other notable participants include Galaxy Digital, Pantera Capital, and Electric Capital.
Shares of Mill City Ventures surged 14.7% to almost $7 on the update.