Mill City Ventures III Seeks Additional $500M for Sui Treasury Strategy, Shares Fall
The Nasdaq-listed finance firm Mill City Ventures III announced on Friday its intention to raise another $500 million through an equity line agreement to fund its recently unveiled Sui treasury strategy. Following this announcement, MCVT shares experienced a double-digit decline.
This recent equity line also comes after Mill City disclosed raising $450 million last week. Those proceeds were allocated to acquire its initial position of 76.2 million SUI tokens, valued at $276 million.
“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,” said Mill City’s Chief Investment Officer, Stephen Mackintosh.
“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.”
In Context
The Sui network is a layer-1 blockchain built to support scalable, low-latency workloads for AI, gaming, and other next-generation applications. Mill City’s investment in SUI reflects a broader industry shift where firms build crypto treasuries beyond Bitcoin (BTC) and Ether (ETH).
Other public firms have recently adopted BNB (BNB), Solana (SOL), and XRP (XRP) as treasury assets.
Financial Impact
Trading data from Google Finance shows Mill City’s (MCVT) stock price fell by approximately 11.4% to $4.91 on the day of its announcement. The shares continued their decline in after-hours trading, dropping a further 4.28%.
Despite the recent drop, MCVT shares have increased by 165% since July 24 — four days before Mill City initially presented its SUI treasury strategy.
Funding and Partnerships
On July 24, Mill City successfully raised $450 million through the sale of 83 million shares to institutional investors.
Related: Crypto token unlocks may halve to $3B in August; SUI, FTN top list
The capital injection included participation from prominent players like Pantera Capital, Electric Capital, ParaFi Capital, and FalconX. Galaxy Asset Management is serving as the treasury asset manager.
Mill City reported that substantially all (around 98%) of the post-deal proceeds raised during its July 24 equity offering would be directed towards funding the SUI treasury strategy, minimal funds earmarked for its existing lending operations.
SUI, the 15th largest cryptocurrency by market capitalization, experienced a 2.4% decline to $3.50, slightly tracking the broader market’s downward trend, according to CoinGecko data.
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Graph 1: Mill City (MCVT) stock performance on Friday. Source: Google Finance.
Industry Backing Remains Strong
The Mill City Ventures vehicle has operated since its primary offering in late May, exclusively focused on deploying institutional capital primarily into leading Layer-1 blockchains.
