Mill City shares slide 11% after $500M Sui equity line revealed

Mill City Ventures III Eyes Additional $500M Equity Raise to Expand Sui Treasury Strategy After $450M SUI Token Purchase

  • Mill City Ventures III, listed on Nasdaq, may raise an additional $500 million to expand its Sui treasury strategy.
  • An earlier $450 million equity raise this week funded the firm’s purchase of 76.2 million Sui (SUI) tokens, valued at $276 million.
  • The share price of Mill City Ventures III dropped 11.4% after the $500 million equity announcement, with additional declines in after-hours trading.
  • Institutional investors backed the earlier offering, including Pantera Capital, Electric Capital, ParaFi Capital, and FalconX, with Galaxy Asset Management serving as treasury manager.
  • The Sui network is a blockchain designed for scalable, low-latency applications, and more public firms are adding crypto assets to treasuries beyond Bitcoin and Ether.

Mill City Ventures III has announced it may seek up to $500 million in new funding through an equity agreement, supporting the growth of its recently launched Sui treasury strategy. The news comes only days after the firm raised $450 million, which it used to purchase 76.2 million Sui tokens, worth $276 million.

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According to an official company statement, Mill City Ventures III says the new equity line will give them more resources to expand their position as the only Sui treasury with an official relationship with the Sui Foundation. Chief Investment Officer Stephen Mackintosh stated, “We are positioned to capitalize on Sui’s possible growth while scaling SUI-per-share through an institutional-grade wrapper. This brings us one step closer to streamlining public market access to a next-generation blockchain.”

The announcement of the $500 million agreement with Alliance Global Partners led to an 11.4% drop in the share price of Mill City Ventures III (MCVT), closing at $4.91 on Friday, according to Google Finance data. Shares declined an additional 4.28% in after-hours trading.

The company’s Sui treasury strategy started on July 24, when it raised $450 million from the sale of 83 million shares to institutional investors. Participants in the offering included Pantera Capital, Electric Capital, ParaFi Capital, and FalconX, while Galaxy Asset Management is acting as the treasury asset manager. Mill City said it would allocate about 98% of the proceeds to build its Sui holdings, using the remainder for its short-term lending business.

The Sui network—a layer-1 blockchain—supports large-scale, low-latency use cases in areas like Artificial Intelligence and gaming. The network’s SUI token is currently the 15th largest cryptocurrency by market cap. Other public companies have started adding digital assets, like BNB, Solana, and XRP, to their treasuries. SUI is trading at $3.50, down 2.4%, according to CoinGecko data.

Despite recent drops, MCVT shares remain up 165% since the start of its Sui treasury strategy in late July.

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