Nasdaq-traded finance firm Mill City Ventures III is making waves with its aggressive crypto strategy, announcing a second major investment in Sui network's native token just days after its initial $276 million purchase. The move comes as the company's shares tumble 11% following the announcement.

High-Stakes Crypto Treasury Expansion

Mill City revealed plans to potentially acquire an additional $500 million worth of SUI tokens through an equity agreement with Alliance Global Partners. This follows the firm's recent purchase of 76.2 million SUI tokens worth $276 million, establishing what it claims to be "the only Sui treasury with an official Sui Foundation relationship."

——"We're institutionalizing access to next-generation blockchain assets," said CIO Stephen Mackintosh, framing the move as a strategic play on Sui's potential growth——

Market Reaction Tells Contrasting Story

Investors showed skepticism despite the ambitious plan. Mill City's stock (MCVT) plunged 11.4% to $4.91 on the news, with after-hours trading dipping another 4.28%. The sell-off contrasts sharply with the stock's 【165% surge】 since July 24, when the firm first hinted at its SUI strategy.

The Sui network, designed for AI and gaming applications, represents Mill City's bet on blockchain evolution beyond Bitcoin and Ethereum. This aligns with a growing trend of public companies diversifying crypto treasuries, including recent BNB, SOL and XRP acquisitions by other firms.

Heavyweight Backing for Bold Strategy

Behind the scenes, Mill City's crypto pivot enjoys support from major industry players. The firm's July 24 $450 million share offering attracted investments from Pantera Capital, Electric Capital and FalconX, with Galaxy Asset Management overseeing treasury management. Notably, 98% of proceeds are earmarked for SUI acquisitions.

As of press time, SUI trades at $3.50, down 2.4% amid broader market declines. The token currently ranks as the 15th largest cryptocurrency by market capitalization, according to CoinGecko data.

Why This Matters for Crypto Adoption

Mill City's aggressive moves signal growing institutional interest in altcoin treasuries, despite short-term market volatility. The 11% stock drop suggests investor caution about concentrated crypto exposure, even as the firm positions itself as a bridge between traditional finance and emerging blockchain ecosystems.

Industry observers will watch whether Mill City's bet pays off as the Sui network develops its ecosystem for next-generation decentralized applications. The coming months may prove whether this is visionary investing or overconcentration in an unproven asset.