Mill City Buys 5.6M SUI for $20M at $3.65 as Holdings Hit 81.9M

Mill City Ventures has acquired an additional 5.6 million SUI tokens for approximately $20 million, paying an average price of $3.65 per token, slightly below the market rate at the time [1]. This purchase brings the firm’s total holdings to nearly 81.9 million SUI tokens, representing a significant portion of the token’s circulating supply [1]. The SUI blockchain, developed by Mysten Labs, has a current market capitalization in excess of $13 billion, with the token trading around $3.74 as of early Monday [1].

The acquisition strategy is facilitated by a direct agreement with the SUI Foundation, which allows Mill City to purchase tokens in tranches at discounted rates. Chief Investment Officer Stephen Mackintosh has emphasized that the firm is also acquiring SUI through public market trades and from other large holders willing to sell at favorable terms [1]. The firm plans to stake a portion of its holdings to generate a steady income stream, which will be reinvested into its broader digital asset operations [1].

Earlier in the month, Mill City announced its intention to deploy an additional $500 million into SUI purchases, supported by an equity line that enables cash generation through share sales. This commitment followed the completion of a $450 million private placement led by London-based hedge fund Karatage and the SUI Foundation [1]. Karatage, co-founded by Mackintosh and Marius Barnett, has long-standing ties to the development of the SUI blockchain [1].

The firm’s growing influence in the SUI ecosystem is evident in its strategic accumulation of tokens and its financial backing of the platform. These actions are seen as part of a coordinated effort to stabilize the token’s price and enhance its utility within the decentralized finance (DeFi) landscape [6]. Despite recent volatility—SUI dropped 14.6% to $3.27 following a $210 million token unlock—the continued support from large institutional investors signals long-term confidence in the asset [4].

The growing concentration of SUI tokens in the hands of institutional treasuries like Mill City raises questions about market dynamics, including liquidity and investor sentiment. While such entities can exert influence over token behavior, the increased institutional interest also underscores the appeal of SUI to investors seeking yield and long-term value [3]. The latest purchase adds to the narrative of growing institutional confidence in the asset, particularly amid broader market uncertainty [6].

The SUI treasury’s actions have not gone unnoticed. Analysts and investors are closely monitoring the firm’s movements as potential indicators of future price trends. While the purchase itself is not a direct predictor of performance, it contributes to a broader narrative of growing institutional backing and strategic investment in the SUI ecosystem [6].

Source:

[1] SUI Treasury Manager Buys Millions More Tokens at Discount (https://coindoo.com/sui-treasury-manager-buys-millions-more-tokens-at-discount/)

[2] Mill City Ventures holds 81.8 million SUI tokens valued at $316 million (https://www.investing.com/news/company-news/mill-city-ventures-holds-818-million-sui-tokens-valued-at-316-million-93CH-4182881)

[3] Mill City Ventures Stakes $316M SUI for 3% Yield (https://www.ainvest.com/news/mill-city-ventures-stakes-316m-sui-3-yield-2508/)

[4] SUI Price, SUI Price, Live Charts, and Marketcap (https://www.coinbase.com/price/sui)

[5] Mill City SUI Purchase: A Strategic $20 Million Boost To ... (https://bitcoinworld.co.in/mill-city-sui-purchase/)

[6] Crypto With $4 Target Grows In Popularity Among Whales ... (https://www.msn.com/en-us/money/markets/crypto-with-4-target-grows-in-popularity-among-whales-as-sui-sui-secures-500m-defi-treasury-deal/ar-AA1KfEnD)