Mill City Ventures Secures $500 Million to Expand SUI Holdings as Stock Drops 11%

Key Takeaways

• Mill City Ventures III secured a $500 million equity facility to expand its SUI treasury strategy
• The company currently holds 76.2 million SUI tokens after completing an initial $276 million purchase
• Mill City stock (MCVT) declined 11.4% to $4.91 following the announcement
• The investment represents a strategic shift toward diversified cryptocurrency treasury holdings beyond Bitcoin and Ethereum
• Major institutional investors including Pantera Capital, Electric Capital, and ParaFi Capital participated in the funding round

Strategic Investment Expansion

Mill City Ventures III, a Nasdaq-listed company, has announced the potential to raise an additional $500 million through an equity agreement to fund its recently unveiled Sui treasury strategy. This announcement follows the successful raising of $450 million earlier in the week, which was utilized to purchase the first batch of 76.2 million SUI tokens valued at $276 million.

Stephen Mackintosh, the company’s Chief Investment Officer, explained the strategic rationale: “This equity facility is designed to provide us with the firepower to expand our position as the only Sui investment vehicle in the market with a formal relationship with the Sui Foundation.”

The executive further emphasized the company’s positioning: “We are positioned to capitalize on Sui’s growth potential while scaling our SUI-per-share through an institutional-grade wrapper platform. This brings us one step closer to streamlining public market access to next-generation blockchain technology.”

Sui Network Overview

The Sui network represents a layer-1 blockchain specifically designed to support scalable, low-latency workloads for artificial intelligence, gaming, and other next-generation applications. Mill City’s investment in SUI tokens, which power the Sui network, reflects a broader industry shift toward building cryptocurrency treasuries that extend beyond traditional Bitcoin and Ethereum holdings.

Several other public companies have recently adopted alternative digital assets including BNB, Solana, and XRP as treasury assets, indicating a diversification trend in corporate cryptocurrency strategies.

Market Response and Stock Performance

The announcement of the $500 million equity credit facility with Alliance Global Partners contributed to an 11.4% decline in Mill City’s stock price (MCVT) to $4.91. The stock experienced an additional 4.28% decline in after-hours trading.

Despite this immediate market reaction, MCVT shares have demonstrated significant growth, increasing 165% since July 24, which occurred four days before Mill City announced its SUI treasury strategy.

Digital assets treasury management strategy Source: EY

Institutional Backing and Financial Structure

On July 24, Mill City successfully raised $450 million through the sale of 83 million shares to institutional investors. This funding round included investments from prominent firms such as Pantera Capital, Electric Capital, ParaFi Capital, and FalconX, with Galaxy Asset Management serving as the treasury asset manager.

The company has allocated approximately 98% of the proceeds to fund its SUI treasury strategy, while the remaining 2% supports current short-term lending operations.

Market Context

SUI, currently ranked as the 15th largest cryptocurrency by market capitalization, experienced a 2.4% decline to $3.50, consistent with broader market movements. This price action aligns with general cryptocurrency market trends and reflects normal volatility patterns within the digital asset sector.

The strategic positioning by Mill City Ventures represents a significant development in the institutional adoption of alternative blockchain technologies, particularly those focused on supporting emerging applications in artificial intelligence and gaming sectors.