Sui Group (NASDAQ:SUIG) reported third-quarter net income of $47.7 million, helped by gains on its digital asset holdings, while executives said they were conserving cash and holding off on expansion plans amid volatile markets.
The company earned $0.59 per diluted share for the quarter ended Sept. 30, 2026, compared with a net loss of $44.3 million, or $0.72 per diluted share, a year earlier. Chief Financial Officer Joseph Geraci cautioned that results may not be comparable because the company shifted from specialty finance toward blockchain-native treasury management on July 31, 2025.
Chairman Marius Barnett said on the earnings call that Sui Group’s priorities include increasing SUI tokens per share, generating returns through staking and lending, and maintaining financial flexibility. During the question-and-answer session, he said the company had postponed expansion programs to cut costs and did not foresee using existing cash for share buybacks at this point.
Digital Asset Gains Drive Quarterly Profit
Total revenue and other income, excluding net realized and unrealized losses on investments, fell to $557,000 from $2.6 million a year earlier. Geraci attributed the decline primarily to lower investment and interest income as the legacy loan portfolio shrank, along with lower SUI staking revenue because of a decline in the token’s market price when rewards were earned.
Results included approximately $54.7 million in net gains on digital assets and receivables. That comprised $82.7 million in net unrealized gains, including $3 million in amortization of deferred income, partly offset by $28 million in realized losses associated with digital asset trading.
Geraci said the realized losses were primarily attributable to high-frequency trading and were almost entirely non-cash. He added that the reported gains and losses do not necessarily correspond to cash inflows or outflows of the same magnitude.
Operating expenses, excluding the digital asset and receivables gains and losses, rose to approximately $5.2 million from $3.9 million. Cash and cash equivalents stood at approximately $700,000 on Sept. 30, down from $21.9 million at the end of 2025. Including stablecoins, cash and cash equivalents were approximately $10.7 million.
Treasury Strategy Emphasizes Lending and Staking
As of Nov. 2, Sui Group held approximately 109.3 million SUI tokens, including digital asset loans and receivables, Barnett said. On a fully adjusted basis, the holdings represented approximately 1.35 SUI per common share.
A significant majority of the holdings were staked, generating an estimated annual yield of approximately 1.5% during the quarter and approximately 4,000 SUI per day, according to Barnett. The company has also lent 6 million SUI to Bluefin, a decentralized trading and lending platform, under an agreement that entitles Sui Group to participate in revenue from certain platform activities.
Barnett said the company continues to explore institutional lending opportunities, including arrangements with market makers or lenders that could involve guarantees. He said the Bluefin loan was not made through smart contracts or decentralized finance protocols, and that the company would consider such protocols when it became comfortable with their security risks.
Sui Group held approximately $10 million of suiUSDe as of Sept. 30, which Barnett described as support for stablecoin infrastructure on the Sui network.
Cash Preservation Takes Priority
Asked about potential buybacks, Barnett said the company wanted to preserve cash and maintain runway without having to sell treasury assets. He said it could consider instruments such as convertibles or preferred securities to fund buybacks in the future if market conditions and the risk profile were appropriate.
“For the next six to nine months, we need to stay very disciplined and see where markets are at that point in time,” Barnett said.
The company also has investments in financial intelligence developer Nof1 and AI research company Recursive Superintelligence. Barnett said Sui Group would be selective in evaluating additional investments while preserving flexibility for its treasury operations.
Chief Executive Officer Douglas Polinsky said the legacy specialty finance business received approximately $900,000 in repayments and redemptions during the first nine months of 2026. Its remaining traditional lending portfolio was valued at zero as of Sept. 30, after impairments and credit provisions, because of a markdown on a non-performing loan.
Sui Ecosystem Developments
Barnett highlighted several developments across the Sui blockchain, including Securitize’s introduction of a tokenized high-income investment fund with Neuberger as sub-advisor and tZERO’s plans to integrate its regulated digital securities infrastructure with Sui.
After the quarter ended, Circle’s Cross-Chain Transfer Protocol V2 went live on Sui, enabling native USDC transfers across supported networks. Samsung also announced plans to integrate USDC transfers into Samsung Wallet, with Sui among its blockchain partners, Barnett said.
He said network activity had increased but remained generally slow amid market volatility. To assess adoption, the company is watching metrics including total value locked on-chain, stablecoin transaction volumes, the number of stablecoins and the number of developers.
About Sui Group (NASDAQ:SUIG)
Sui Group Holdings Limited, formerly known as Mill City Ventures III, Ltd., is a digital asset treasury and investment company focused on the Sui blockchain ecosystem. The company’s strategy centers on acquiring and holding SUI, the native digital asset of the Sui network, as well as supporting opportunities connected to the broader ecosystem.
Sui is a Layer 1 blockchain designed to support decentralized applications, digital assets and other blockchain-based services. Through its treasury strategy, Sui Group seeks to provide investors with publicly traded exposure to SUI and may pursue investments or partnerships involving projects, infrastructure and businesses that use or contribute to the Sui network.
The company trades on the Nasdaq Capital Market under the symbol SUIG.
