Nasdaq-listed company Mill City invests another $20 million to hoard SUI! 81.87 million tokens are staked for yield, and the Layer 1 strategic layout hides a triple game.

Nasdaq-listed Mill City Ventures disclosed on August 11 that it has increased its holdings by 5.6 million SUI tokens at an average price of $3.65 (valued at $20 million), bringing its total holdings to 81.87 million tokens (approximately $316 million). The company obtained a 4-6% discount through a special protocol with the Sui Foundation and staked 98.5% of its tokens to earn an annualized return of 3% (daily earnings of $26,000). A previous $450 million private sale has established its "institutional channel" position in the SUI ecosystem, and the current $126 million reserve is aimed at a $500 million increase plan. However, the risks of single asset exposure, the dilution risk of equity credit, and competition pressure in the Layer 1 track pose threefold challenges to its aggressive strategy.

Whale's Ingestion of SUI: Discount Channel for $316 Million Holdings

• Strategic Accumulation Revealed: Mill City purchased 5.6 million SUI at a discount of 4-6% below market price (market price $3.80-$3.90), relying on exclusive cooperation with the Sui Foundation to acquire low-priced tokens.
• Holdings Scale Exposure: Total holdings reached 81.87 million SUI (worth 316 million USD), significantly accounting for the circulating supply.
• Stake Earnings Engine: Nearly 98.5% of tokens participating in staking, calculated at the current annual rate of 3%, daily earnings are approximately $26,000 (annualized $9.5 million).
• Ammunition reserves are ample: Retaining $126 million in liquidity reserves to pave the way for the subsequent $500 million purchase plan.

Layer 1 Strategic Transformation: From Lender to Digital Asset Treasury

• Business Focus Disruption: Last month, the company completed a transformation from professional lending to digital asset treasury through a $450 million private sale, becoming the de facto institutional entry point into the SUI ecosystem.
• Capital Operation Context: This round of $20 million capital increase is implemented through Equity Line Agreement, marking the formation of a structured capital deployment model.
• Long-term value logic:
  • Acquire core holdings at low prices + stake to increase returns + wait for ecological explosion to boost valuation
  • If the Sui network expands successfully, Mill City will achieve excess NAV growth through centralized Holdings.

Risk Lens: Single Exposure and Shareholder Equity Game

• Price Volatility Amplifier: The company's fate is deeply tied to the performance of the SUI market, and the volatility of the token will directly transmit to the stock price, exacerbating investor risk.
• Regulatory Black Swan: Changes in blockchain regulatory policies may impact the value of underlying assets.
• Equity Dilution Risk: Although equity credit financing provides ammunition, large-scale exercise during market downturns will dilute existing shareholders' equity.
• Market Confidence Indicator: The current stock price has a 15% premium relative to the Net Asset Value (NAV), reflecting investors' optimism about the strategic value outside of their Holdings, but the sustainability of the premium depends on the effectiveness of Layer 1 experiments.

Conclusion: The High-Stakes Experiment of Institutional Capital Deeply Binding to Public Chains Mill City, with its Nasdaq listing status, heavily bets on a single public chain token, creating a new paradigm for the integration of traditional capital markets and Layer 1 ecosystems. Its discount token channel, stake yield engine, and backup capital reserves build a tactical system that is both offensive and defensive. However, the stake lock-up rate of as high as 98.5% reduces liquidity risk but also weakens flexibility in dealing with sudden black swans. When the net asset value of $316 million is closely tied to SUI price fluctuations, is the 15% premium on the stock price a testament to the market's strategic foresight, or a naive mispricing of risk? The outcome of this institutional-level public chain gamble will depend on whether the SUI ecosystem can bear the weight of capital expectations.