Mill City Ventures’ $316m SUI treasury play signals tactical Layer 1 positioning
Fresh off a $20 million purchase, Mill City Ventures has hundreds of millions more ready to deploy. With nearly all 81.8 million tokens staked for yield and a direct line to discounted supply, the Nasdaq-listed firm appears to be executing a calculated strategy in the Layer 1 landscape.
Summary
- Mill City Ventures boosts SUI holdings to $316M after $20M discounted purchase, staking nearly all for yield.
- Unique Sui Foundation deal and millions in liquid reserves position firm for high-stakes Layer 1 allocation plan.
On August 11, Mill City Ventures disclosed the acquisition of 5.6 million SUI tokens at an average price of $3.65, bringing its total holdings to 81.87 million SUI valued at $316 million as of Sunday, August 10.
The purchase, executed slightly below Sunday’s market price of $3.80-$3.90, leveraged the firm’s unique arrangement with the Sui Foundation while maintaining $126 million in liquid reserves for future allocations. The Nasdaq-listed firm confirmed that almost all of these tokens are staked, generating a steady yield.
Inside Mill City’s SUI accumulation strategy
Mill City Ventures’ aggressive SUI accumulation and pivot from specialty lending to a digital asset treasury began in earnest earlier last month, culminating in a $450 million private placement that established it as Sui’s de facto institutional vehicle.
The latest $20 million purchase, executed at a 4-6% discount to market, is part of a broader $500 million allocation plan funded through an equity line agreement, signaling a structured capital deployment.
The math behind the strategy is revealing. With nearly 81.87 million SUI staked, Mill City Ventures claims to generate roughly $26,000 in daily staking rewards, which could translate to about $9.5 million annually at current yield rate of approximately 3%.
The long-game advantage and its risks
Mill City’s approach mirrors a playbook more common in private crypto funds than Nasdaq-listed firms: accumulating a core position at favorable prices, layering in yield, and waiting for network adoption to drive valuation.
The Sui Foundation relationship is central to this. It gives the company access to discounted tokens creates an immediate acquisition premium, while staking turns the position into a productive asset. If Sui’s ecosystem grows, Mill City’s NAV could benefit disproportionately, given its concentrated exposure.
Yet concentration cuts both ways. The firm’s fortunes are now tightly coupled with SUI’s market performance, regulatory treatment, and blockchain utility. This means SUI’s price swings will directly feed through to Mill City’s book value and share price, magnifying volatility for investors.
At the same time, while the equity line agreement provides a pipeline for fresh capital, it also risks diluting shareholders if executed heavily in weaker market conditions. For now, the market appears optimistic.
MCVT shares trade at a 15% premium to NAV, according to the press release, suggesting investors see upside beyond the raw token holdings. Whether that premium holds will depend on how deftly Mill City navigates the next phase of its Layer 1 experiment.
