Sui Group NASDAQ: SUIG reported second-quarter revenue and other income of $1.2 million, up from $948,000 a year earlier, as staking revenue and digital lending interest from its SUI token treasury strategy contributed to results. The company posted a net loss of $18.9 million, or $0.23 per diluted share, compared with net income of approximately $677,000, or $0.11 per diluted share, in the prior-year quarter.
Chief Financial Officer Joseph Geraci said the quarter included approximately $16.6 million in non-cash losses on digital assets and receivables. Those losses consisted of $18.9 million in realized losses, partly offset by an approximately $2.3 million unrealized gain. The realized losses included a $14 million loss associated with an additional SUI token loan to Bluefin and a $2.4 million loss related to the return of SUI tokens from Galaxy Digital, acting as the company’s asset manager.
Geraci said the accounting effects were driven primarily by mark-to-market adjustments tied to changes in the SUI token price and the deployment of digital assets. He said the U.S. GAAP-required treatments did not represent a cash outflow or affect the company’s liquidity.
Total operating expenses were $20.1 million in the second quarter, compared with approximately $2,000 a year earlier. Excluding non-cash losses on digital assets and receivables, operating expenses were $3.4 million. Cash and cash equivalents stood at $3.1 million as of June 30, down from $21.9 million at Dec. 31, 2025.
Treasury strategy emphasizes staking and ecosystem lending
Chairman Marius Barnett said Sui Group held approximately 109 million SUI tokens as of Aug. 3. A significant majority of those holdings were staked, generating estimated annual yield of approximately 1.7%, or roughly 5,300 SUI per day. Based on the closing prices of SUIG common stock and SUI on Aug. 3, the company was trading at an approximate mNAV of 0.72x, he said.
The company is also pursuing balance-sheet productivity through strategic lending arrangements. During the quarter, Sui Group lent an additional 4 million SUI tokens to Bluefin, bringing its total commitment to 6 million SUI tokens. In exchange, its participation in certain Bluefin revenues increased to 11% from 5%, payable in SUI. The amended agreement has an initial term through September 2028.
Barnett said the added financing supported Bluefin’s acquisition of Suilend, which he described as the largest lending platform in the SUI ecosystem. He characterized the arrangement as a risk-adjusted financing transaction rather than an equity investment and said the company expects to be able to receive its SUI tokens back at the end of the term if it chooses.
During the quarter, Sui Group unwound certain DeFi positions following a reassessment of associated risks and recovered all capital deployed, Barnett said. Management said it is evaluating lending opportunities with market makers and institutional businesses, while favoring structures with stronger counterparties and balance sheets even if they produce lower yields than DeFi activity.
- Approximately 109 million SUI tokens held as of Aug. 3, according to management.
- Most token holdings staked, with estimated 1.7% annual yield.
- Bluefin commitment increased to 6 million SUI tokens.
- Revenue participation in certain Bluefin revenue increased to 11% from 5%.
- Approximately 10 million SUI USD stablecoins held as of June 30.
Management highlights network and institutional developments
Barnett said the SUI network sustained 297,000 transactions per second with 300-millisecond finality, while its developer count reached 1,400 and ranked 10th among chains by GitHub activity. The network surpassed 4.5 billion cumulative transactions, he said.
Management also pointed to Coinbase’s introduction of direct staking for eligible users and institutions, as well as the availability of a tokenized private-market strategy from Mubadala Capital on the network. Barnett said Cumberland, Fluid and SwissBorg joined a group of more than 20 participants building on Hashi, a SUI-native mechanism intended to allow Bitcoin to serve as verifiable collateral while remaining on its native chain. Other named participants included BitGo, Bullish, FalconX and Ledger.
SUI introduced protocol-level gasless stablecoin transfers during the quarter. Between May 10 and June 10, the network processed approximately $65 billion in stablecoin transfer volume, Barnett said. He described the feature as reducing friction for payments and higher-frequency applications by eliminating the need for users to maintain a separate SUI balance to pay transaction fees.
AI investments target agentic finance
Sui Group invested $3 million through a SAFE in Nof1, an artificial intelligence research company focused on financial-market models. Barnett said Nof1’s Alpha Arena platform was designed to test whether leading AI models could generate returns using real capital and autonomous trading decisions. Initial results showed limitations of general-purpose models in financial markets, he said, and Nof1 is developing models with expanded reasoning, research and multi-step execution capabilities.
The company also invested $3 million in Recursive Superintelligence as part of a $650 million financing round that valued the company at more than $4 billion, according to Barnett. Recursive is focused on systems intended to support continuous, self-directed scientific discovery.
Barnett said the investments are longer-term efforts and that Sui Group will evaluate whether Nof1’s models could support treasury yield and return generation, subject to testing, oversight and risk controls. He said the company sees payment rails, wallets, transaction verification, storage and privacy as potential areas where blockchain infrastructure may support agentic commerce and finance.
Legacy lending portfolio continues to wind down
Chief Executive Officer Douglas Polinsky said the company received approximately $900,000 of repayments and redemptions from legacy specialty-finance investments during the first half of 2026. As of June 30, its remaining traditional lending portfolio consisted primarily of approximately $2.2 million in non-bank loans measured at fair value.
Polinsky said certain borrowers continue to face credit and refinancing challenges, and the company is evaluating collateral, repayment sources and contractual remedies on a loan-by-loan basis. Sui Group does not expect the legacy lending operation to become a significant driver of new originations in the near term, though it may consider selective opportunities with sufficient collateral protection, repayment visibility and risk-adjusted returns.
Management also said it has reduced operating costs by about 50% over the past 12 months. Barnett said the company’s cash and cash-equivalents balance provided more than two years of operating-cost runway, excluding any income or returns from treasury yield and loans. The board is continuing to review leadership, governance and organizational needs, he added, following the recent appointment of Kristina Campbell as an independent director and chair of the audit committee.
About Sui Group (NASDAQ:SUIG)
Mill City Ventures III, Ltd. is a principal investment firm specializing investments in debt and equity securities of public and private companies to fund their operations whether its start-up, acquisition, or growth. It primarily focuses on investing in, lending to, and making managerial assistance available to privately held and publicly traded companies. The firm also advises its portfolio companies with regard to finance and operations. It was formerly known as Poker Magic, Inc Mill City Ventures III, Ltd.
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