Avalanche Foundation, the non-profit organization behind the Avalanche blockchain, is in advanced talks with global investors to create two US-based digital asset treasury companies.
These firms would be tasked with purchasing and holding Avax tokens, the native cryptocurrency of the Avalanche network.
If successful, the move could bring in a total of $1 billion, marking one of the largest treasury-focused projects in the crypto sector this year.
Deal Structure and Fundraising Plans
According to the Financial Times report, the foundation is pursuing two separate but complementary deals.
The first deal aims to raise up to $500 million through a private investment led by Hivemind Capital in a Nasdaq-listed company that would be converted into a crypto treasury vehicle.
This effort is being led by Hivemind Capital, with Anthony Scaramucci, a crypto investor and former White House press secretary, advising on the transaction. This deal will be finalized before the end of the month.
The second deal also targets $500 million but is being structured differently. It involves the creation of a special purpose acquisition vehicle (SPAC) sponsored by Dragonfly Capital. While the proposal has generated significant interest, this transaction may not be completed until October.
In both cases, the newly created entities will initially acquire Avax tokens at discounted prices directly from the Avalanche Foundation. The approach aims to encourage investor participation while increasing the token’s circulation in the market.
Why the Fundraising Matters
Avalanche has set a maximum supply of 720 million Avax tokens, with about 420 million already in circulation. By selling a portion of its holdings to treasury firms, the foundation aims to create a stable base of long-term investors and increase liquidity.
The $1 billion raise is also meant to reinforce Avalanche’s broader ambition: becoming the digital ledger of choice for global capital markets.
Market Backdrop: Opportunities and Risks
The fundraising push comes at a time of mixed signals in the crypto economy. Several publicly traded crypto treasury companies have seen their share prices fall in recent months. This suggests fading enthusiasm among stock market investors.
However, the broader crypto market tells a different story. Tokens like Ethereum and Solana have surged, buoyed by large fundraising rounds and growing institutional interest. According to research firm Kaiko, companies using the treasury model have already raised over $16 billion this year.
Avalanche, by contrast, has lagged in token performance. Its Avax token has not participated in the same rallies enjoyed by rivals. This fundraising effort may help close that gap by signaling strong backing from institutional players.
Wall Street Testing Grounds
Despite the token’s weaker price momentum, Avalanche’s technology is gaining traction among major financial institutions. BlackRock, Apollo, and Wellington Asset Management have all conducted pilot projects using Avalanche’s blockchain to issue tokenized funds.
These experiments reflect a trend on Wall Street, where firms are testing whether blockchain technology can streamline settlement and fund management.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
