I finally understood what the $500 million new financing for Sui is all about. Unlike other "micro-strategies" that directly use the Secondary Market ATM for financing, this one involves "private placements/staged stock issuances" to obtain financing funds, rather than a one-time sale or traditional debt financing.

The "Equity Line Agreement" this time is not a traditional financing method that provides a one-time amount of 500 million dollars; its specific operation method is as follows:

- Financing Tool: Equity Credit Line (Equity Line). This can be understood as a flexible "Equity ATM."

- Core Mechanism: Mill City Ventures Inc. ("Borrower") enters into an agreement with investment firm A.G.P./Alliance Global Partners ("Investor"). According to the agreement, Mill City has the right (but not the obligation) to sell its common stock to A.G.P. for a specified period in the future.

- Financing Amount: The total limit can reach up to 500 million USD. However, this does not mean that the company will immediately receive 500 million USD. It is merely a cap, and the company can "withdraw" this amount of funds in batches and at different time points according to its own needs.

- Initiative: The initiative of financing is completely in the hands of Mill City. The company can decide when to sell stocks and how many stocks to sell in exchange for funds based on stock prices, market conditions, and capital needs.

- Use of funds: Any profits obtained through this method will be used to advance the company's SUI treasury strategy.

In simple terms, this financing method gives Mill City Company great flexibility, allowing it to quickly and efficiently raise funds in the future by selling its own shares to A.G.P., with a total amount not exceeding $500 million, without the need for a large-scale dilution of equity all at once.

This design looks very ingenious and addresses potential issues that these "micro-strategy" companies may face. With a financing limit that can be accessed at any time, they can sell shares selectively to raise funds for purchasing Sui when necessary, which neither affects the stock price nor helps correct the negative premium on the stock. Moreover, the amount of financing is more certain, while SBET's ATM financing may not be able to achieve full financing due to insufficient market liquidity.