Mill City Ventures to load up on more SUI with $500M deal as shares fall 11%

Key Points

1. Mill City Ventures III plans to raise $500 million to boost its SUI treasury, which currently holds 76.2 million SUI tokens after an initial $276 million purchase.

2. The announcement led to an 11.4% drop in Mill City's share price to $4.91, with an additional 4.28% decline in after-hours trading.

3. Mill City's SUI strategy is backed by industry heavyweights, including Pantera Capital, Electric Capital, ParaFi Capital, and FalconX, with Galaxy Asset Management managing the treasury.

4. The company intends to allocate 98% of the proceeds from its $450 million offering to its SUI treasury strategy, with the remaining 2% for short-term lending operations.

5. SUI's price fell 2.4% to $3.50, aligning with broader market trends, despite Mill City's significant investment in the token.