Mill City Ventures III, a publicly traded financial firm on Nasdaq, is making a bold move in the crypto space. The company announced a massive $500 million equity agreement to further expand its holdings in SUI, the native token of the Sui blockchain network. Despite this aggressive investment strategy, the market didn’t respond positively in the short term, sending Mill City’s shares down by more than 11%.
$500M Equity Deal to Scale Up SUI Holdings
On Friday, Mill City Ventures confirmed a $500 million equity line agreement with Alliance Global Partners. This follows its earlier raise of $450 million, used to acquire 76.2 million SUI tokens worth $276 million.
With this latest move, Mill City aims to significantly boost its crypto treasury focused on the SUI token. The firm believes it is well-positioned to become the leading public market vehicle for exposure to the Sui blockchain.
Stephen Mackintosh, Chief Investment Officer at Mill City, stated,
“This equity line is intended to give us the firepower to scale our position as the only Sui treasury on the market with an official Sui Foundation relationship.”
The goal is to offer institutional-grade access to SUI through publicly traded shares, essentially wrapping crypto exposure in a regulated financial instrument.
SUI: The Blockchain Behind the Bet
SUI is the native token of the Sui network, a layer-1 blockchain designed for high-speed, scalable workloads. Built for AI, gaming, and other next-generation applications, the Sui blockchain is gaining attention for its advanced performance capabilities.
The SUI token itself is currently the 15th largest cryptocurrency by market cap, trading around $3.50. While it recently dipped by 2.4% amid a wider crypto market correction, its long-term potential remains a key driver behind Mill City’s aggressive positioning.
The firm’s strategy marks a broader industry trend where companies are building crypto treasuries beyond Bitcoin and Ethereum. Other public firms have also started including BNB, Solana (SOL), and XRP in their balance sheets.
Stock Market Reacts: Shares Slide Over 11%
Despite the long-term vision, investors showed concern over the short-term implications. Mill City’s (MCVT) stock fell 11.4% on Friday, closing at $4.91, according to Google Finance. In after-hours trading, it declined another 4.28%.
This drop reflects market unease about dilution and risk associated with such a large equity line agreement. However, MCVT shares have still gained 165% since July 24, the date when the company first revealed its SUI treasury plans.
While volatility is expected, the company’s leadership seems confident that their bold crypto play will deliver value over time.
Institutional Backing and Treasury Strategy
Mill City’s initial $450 million raise was backed by several prominent names in crypto investment. The offering included participation from:
- Pantera Capital
- Electric Capital
- ParaFi Capital
- FalconX
In addition, Galaxy Asset Management is managing Mill City’s growing crypto treasury. The firm plans to allocate 98% of all funds raised to SUI purchases, with just 2% reserved for its existing short-term lending business.
This level of institutional involvement underscores the seriousness of Mill City’s crypto pivot and the increasing interest in SUI as a next-gen blockchain asset.
Mill City Ventures is taking a high-stakes approach by going all-in on SUI. While its share price has taken a hit, the firm appears focused on long-term gains and pioneering a new model of crypto treasury management through public markets.
If the Sui blockchain lives up to its promise, Mill City’s bet could position it at the centre of a major shift in how institutional investors access digital assets. For now, though, it’s a story of high risk, high potential and a cautious market response.
