TL;DR
- Fundraising Strategy: Avalanche Foundation plans to raise $1B through two deals, one private investment and one SPAC, to launch crypto treasury firms in the U.S.
- Token Allocation: Millions of AVAX tokens will be sold at a discount to fund the treasury entities, one newly formed and one converted from an existing firm.
- Institutional Momentum: Despite recent market cooling, AVAX gains 10% as Avalanche attracts major players like BlackRock and Apollo, testing tokenized finance.
According to reports from the Financial Times, the Avalanche Foundation is advancing plans to raise $1 billion to establish two crypto treasury companies in the United States. The initiative marks a strategic expansion of Avalanche’s footprint in the digital asset treasury space, leveraging discounted AVAX token sales and high-profile investment partnerships to fuel the effort.
Dual-Deal Strategy Targets $1B Raise
The foundation is pursuing a two-pronged fundraising strategy. The first deal involves a private investment of up to $500 million in a Nasdaq-listed company, led by Hivemind Capital and advised by SkyBridge Capital founder Anthony Scaramucci. The second deal centers on a special purpose acquisition company (SPAC) sponsored by Dragonfly Capital, also targeting $500 million. Both deals are expected to close between late September and October, signaling an aggressive timeline for execution.
Discounted AVAX Sales Drive Treasury Formation
Proceeds from the $1 billion raise will be used to purchase millions of AVAX tokens directly from the Avalanche Foundation at a discounted rate. These tokens will form the core holdings of the two treasury companies, which are being positioned as digital asset treasury vehicles. One company will be newly created, while the other involves converting an existing firm into a crypto treasury entity.
Market Context and Strategic Timing
Avalanche’s move comes amid a broader trend of publicly listed firms pivoting toward digital asset treasury strategies. Inspired by models like Strategy’s Bitcoin accumulation, several companies have pursued reverse mergers to transform into crypto-focused entities. However, recent market cooling in August saw share prices of some digital asset treasury firms decline, raising questions about long-term viability.
AVAX Price Movement and Institutional Interest
AVAX has shown resilience despite market headwinds, rising over 10% in the past 24 hours to $29.11. The Avalanche blockchain continues to attract institutional interest, with firms like BlackRock and Apollo using it to test fund tokenization. The foundation’s treasury initiative could further cement Avalanche’s role in the evolving digital finance landscape.
