Mill City Ventures III (Nasdaq: MCVT) has doubled down on its bet on the Sui blockchain with a bold new equity agreement worth $500 million, aimed at expanding its SUI treasury holdings. The move follows a $276 million purchase of 76.2 million SUI tokens earlier this week.
A Strategic Shift in Crypto Treasury Allocation
According to the company’s chief investment officer, Stephen Mackintosh, the latest agreement provides Mill City with the capital to “scale our position as the only SUI treasury on the market with an official relationship to the Sui Foundation.”
“We are positioned to capitalize on Sui’s possible growth while scaling SUI-per-share through an institutional-grade wrapper,” he said in Friday’s statement.
The Sui blockchain, a layer-1 protocol, is optimized for AI, gaming, and high-throughput applications. Its recent rise in institutional attention reflects a broader diversification away from traditional treasury assets like Bitcoin and Ether. In recent months, other firms have turned to BNB, Solana, and XRP to build alternative crypto reserves.
Share Price Drops Despite Strategic Support
Despite the long-term vision, the market reacted sharply to the news. Mill City shares dropped 11.4% to $4.91, with an additional 4.28% decline in after-hours trading. However, MCVT remains up 165% since July 24, when the SUI treasury strategy was first announced.
The equity agreement is being facilitated by Alliance Global Partners, with proceeds directed primarily toward Mill City’s crypto strategy.
Institutional Support and Future Outlook
The initial $450 million raise was backed by major industry players including Pantera Capital, Electric Capital, ParaFi Capital, and FalconX. Galaxy Asset Management is overseeing the treasury asset management.
Approximately 98% of raised funds will support the SUI allocation, with the remainder reserved for Mill City’s short-term lending operations.
As of now, SUI trades at $3.50, down 2.4%, tracking the broader crypto market correction. Mill City’s aggressive posture signals a rising institutional interest in next-generation blockchains poised for AI integration.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.