Mill City Ventures III, a Nasdaq-listed financial firm, has taken a bold step into the crypto space by announcing a fresh $500 million equity agreement to boost its holdings of the Sui (SUI) cryptocurrency. This follows a $450 million raise earlier in the week, used to acquire 76.2 million SUI tokens worth approximately $276 million.
The newly signed equity line agreement with Alliance Global Partners aims to expand Mill City’s position as the leading institutional Sui holder. According to Chief Investment Officer Stephen Mackintosh, the move is part of a larger strategy to provide public market access to Sui through a regulated investment structure.
“Our aim is to scale SUI-per-share in a way that brings institutional exposure to one of the most innovative blockchain platforms in the market,” said Mackintosh. “We are now the only public company with an official Sui Foundation relationship.”
Why Sui? Understanding the Bet
Sui is a layer-1 blockchain designed for high-performance workloads such as gaming, AI, and other next-generation applications. The network, known for its speed and scalability, competes with other emerging chains in the post-Ethereum era.
By choosing SUI as a primary treasury asset, Mill City joins a growing list of companies diversifying beyond traditional crypto holdings like Bitcoin and Ethereum. In recent weeks, several other public firms have added Solana, BNB, and XRP to their balance sheets.
The appeal lies in both the technological edge and the potential upside of SUI, which currently ranks as the 15th largest cryptocurrency by market cap. As of Friday, SUI was trading at $3.50, down 2.4% in line with broader market trends.
Share Price Dips After Announcement
Despite the strategic move, investors showed concern. Mill City’s share price fell 11.4% on Friday following the $500 million equity announcement. Shares dropped from $5.54 to $4.91, with an additional 4.28% dip in after-hours trading, according to Google Finance.
However, the stock has still gained 165% since July 24, the day Mill City officially launched its SUI treasury strategy. The rise suggests longer-term investor optimism, even as short-term reactions remain volatile.
The equity raise will come in the form of an equity line financing arrangement, where Mill City will issue shares in tranches to raise capital when needed. While this gives the firm flexibility, it also raises dilution concerns likely one reason behind the initial sell-off.
Backed by Top Crypto Investors
Mill City’s crypto treasury pivot isn’t happening in isolation. The company has secured support from some of the most respected names in the crypto investment world. Its recent $450 million raise included participation from Pantera Capital, Electric Capital, ParaFi Capital, and FalconX.
Galaxy Asset Management, part of Mike Novogratz’s Galaxy Digital is managing the SUI treasury on behalf of Mill City, giving the initiative a strong institutional backbone.
Of the funds raised, Mill City plans to allocate 98% towards building its SUI holdings. The remaining 2% will support its original business in short-term lending. This shows a clear and deliberate shift in focus, one that could reshape its future identity in financial markets.
A High-Stakes Play for a New Era
Mill City Ventures’ aggressive bet on Sui marks a significant evolution in how public companies approach crypto assets. While its share price took a hit on news of further equity dilution, the backing from top-tier crypto funds and its strategic alignment with the Sui Foundation suggest long-term conviction.
As blockchain networks continue to evolve, Mill City’s play could pave the way for more diversified corporate crypto treasuries, moving beyond Bitcoin and Ethereum and into more specialised layer-1 ecosystems built for AI, gaming, and digital innovation.
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