Nasdaq-listed Mill City Ventures III may raise another $500 million under an equity agreement to fund its recently announced Sui treasury strategy — however, the news triggered a double-digit fall in Mill City’s share price.

The finance firm’s announcement on Friday came shortly after raising $450 million earlier in the week, which was used to buy its first batch of 76.2 million Sui (SUI) tokens worth $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,” the firm’s chief investment officer, Stephen Mackintosh, said:

“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 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 bet on SUI — the token powering the Sui network — reflects a broader industry shift toward building crypto treasuries beyond Bitcoin (BTC) and Ether (ETH). 

Other public firms have adopted BNB (BNB), Solana (SOL) and XRP (XRP) as treasury assets in recent weeks.

Mill City shares tank

However, the $500 million equity line agreement with Alliance Global Partners contributed to an 11.4% fall in Mill City’s (MCVT) share price to $4.91 on Friday, Google Finance data shows. MCVT has fallen another 4.28% in after-hours.

Despite the drop, MCVT shares are still up 165% since July 24 — four days before Mill City unveiled its SUI treasury strategy.

Industry heavyweights are behind Mill City’s SUI strategy

On July 24, Mill City 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 offering included investment from Pantera Capital, Electric Capital, ParaFi Capital, and FalconX. Galaxy Asset Management is serving as the treasury asset manager.

Mill City said it would allocate around 98% of the proceeds to fund its SUI treasury strategy, while the remaining 2% would be for its existing short-term lending business.

SUI, the 15th largest cryptocurrency by market cap, is down 2.4% to $3.50 — in line with the broader market fall, CoinGecko data shows.

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