- Mill City secured a $500M deal to sell stock and fund its Sui blockchain treasury push.
- The firm aims to become the only public Sui treasury with official foundation ties.
- Investors responded fast as the stock dropped 11% following the bold funding news.
Mill City Ventures III Ltd (NASDAQ: MCVT) has signed a $500 million equity line agreement with A.G.P./Alliance Global Partners. The move allows the company to sell its common stock at its discretion. Proceeds will support its strategic role as a treasury vehicle for the Sui blockchain.
According to the official statement, there is no commitment fee attached to the deal. All offerings will be issued under a valid registration statement, pending standard closing conditions. The company stated this does not constitute a sale offer or a solicitation to buy.
Mill City said the equity will be used to expand its position in the Sui network. “This equity line is intended to give us the firepower to scale our position,” said CIO Stephen Mackintosh. He added, “We are the only Sui treasury on the market with an official Sui Foundation relationship.”
A Strategic Move into the Sui Ecosystem
The Sui blockchain is a new layer-1 network built for speed and scalability. It is tailored for high-performance applications like AI, gaming, and next-generation software. Sui was created by Mysten Labs, a team with ties to Meta’s Diem project. It supports smart contracts and decentralized applications with low-latency performance.
Mill City Ventures aims to use the $500 million to deepen its role as a core treasury holder of the SUI token. SUI is the native digital asset of the Sui network. This marks a shift from the usual preference for Bitcoin or Ethereum. Other firms recently adopted Binance Coin (BNB) as part of their treasury mix.
The firm now describes itself as the only publicly traded entity with a formal relationship with the Sui Foundation. It believes this unique alignment will offer direct exposure to one of the fastest-growing blockchain projects.
Risk Factors and Regulatory Disclosures
Mill City included standard disclaimers regarding forward-looking statements in its announcement. The company warned that driving forces such as market fluctuations and regulatory uncertainty could cause divergences in actual results. Market price volatility of SUI might result in different projected results. So, whether SUI is classified as a security is still a regulatory concern.
Mill City acknowledged that government regulations on cryptocurrencies could change the company’s capital strategy. These risks could affect both the returns as well as the long-term strategic positioning of the company. The firm emphasized that all securities offerings under the equity agreement will follow strict compliance measures. The company did not specify a fixed timeline for the use of the proceeds.
The press release aimed to clarify that the announcement does not involve a sale or direct investment offer. It only confirms the existence of a financial mechanism available at Mill City’s discretion.
Market Reaction and Share Price Volatility
Following the announcement, Mill City Ventures stock dropped sharply by 11.37%. It closed at $4.91, down from the previous close of $5.54. After-hours trading saw a further dip to $4.70, marking a 4.28% decline. The trading day’s range was between $4.65 and $6.20.
The company’s 52-week price range spans from $1.17 to $8.01. It holds a market cap of $29.77 million and a P/E ratio of 25.64. A large sell-off was likely driven by investor concerns regarding equity dilution and how capital will be used in the future. On average, 5.14 million shares were changing hands daily. Mill City assumes the listing of a U.S.-headquartered financial security without being dividend-yielding on the NASDAQ.
