Mill City Ventures III has announced plans to raise $500 million to support its Sui treasury strategy, which led to a significant drop in the company's shares.
Announcement of Fundraising
Mill City Ventures III announced an agreement to raise $500 million under its recently announced Sui treasury strategy. Earlier this week, the company successfully raised $450 million, becoming the first public company to create a Sui treasury by acquiring 76.2 million SUI tokens valued at $276 million.
Mill City's Chief Investment Officer, Stephen Mackintosh, commented: "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."
Share Drop of Mill City
The announcement of fundraising impacted Mill City Ventures shares, which fell by 11.4% to $4.91 on Friday, according to Google Finance data. In after-hours trading, shares fell an additional 4.28%.
Despite this drop, MCVT shares have risen by 165% since July 24, when the company first unveiled its Sui treasury strategy.
Support from Major Players
On July 24, Mill City raised $450 million through the sale of 83 million shares to institutional investors. The investment round included participation from Pantera Capital, Electric Capital, ParaFi Capital, and FalconX, with Galaxy Asset Management serving as the treasury asset manager.
Mill City stated that about 98% of the proceeds would be allocated to fund its SUI treasury strategy.
The fundraising announcement by Mill City Ventures III highlights the growing interest in cryptocurrency treasuries, but the drop in shares raises caution in investments.
