SUI treasury firm Mill City shares drop as it eyes raising additional $500 million

Short-term lender Mill City Ventures III is seeking to buy as much as another $500 million worth of SUI tokens after securing an equity line agreement which allows them to sell company shares in order to fund their crypto treasury strategy, according to a statement released Friday.

The announcement follows Thursday's news that Mill City had spent about $277 million to buy over 76 million SUI tokens. The purchase followed Mill City officially establishing itself as a corporate Sui treasury and closing a $450 million private placement .

On Friday, the company said A.G.P./Alliance Global Partners had agreed to provide an equity line which will allow it to sell up to $500 million worth of Mill City common stock. "Any proceeds from the equity line, which included no commitment fee, will be used to further the Company’s SUI treasury strategy," Mill City said on Friday.

While companies have principally targeted accumulating Bitcoin when pivoting to a crypto-treasury strategy, other organizations have focused on Ethereum and Solana. Mill City is branding itself as the only SUI treasury company working in lockstep with the Sui Foundation, which is also an investor .

"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," Mill City Chief Investment Officer Stephen Mackintosh said Friday's statement. "With half a billion in potential capital at favorable terms, we are positioned to capitalize on Sui’s possible growth while scaling SUI-per-share through an institutional-grade wrapper."

Sui is a Layer 1 blockchain developed by Mysten Labs that uses the bespoke Move programming language.

Shares down

In early trading Mill City's shares dropped by more than 10% before recovering slightly. The company's shares were trading at $5.30, down 4%, as of 10:31 a.m. ET, according to TradingView . 

The company has a modest market cap of roughly $32 million.