Thomas Daniels
The Avalanche Foundation is reportedly aiming to raise $1 billion to establish two U.S.-based digital asset treasury entities, a move designed to deepen institutional engagement with its native token, AVAX.
According to sources cited by the Financial Times, the nonprofit is currently in advanced discussions with investors to facilitate the launch of a digital asset treasury firm and to repurpose an existing entity into a long-term AVAX accumulation vehicle. Both structures will function similarly to traditional corporate treasuries, but focused exclusively on crypto assets.
AVAX to Be Sold at Discounted Rates
As part of the strategy, the Avalanche Foundation intends to sell millions of AVAX tokens from its treasury at discounted rates, providing the two vehicles with a significant stake in the network’s long-term growth. Based on current valuations, the proposed $1 billion raise could represent the purchase of approximately 34.7 million AVAX, equivalent to roughly 8% of the circulating supply.
The total maximum supply of AVAX is capped at 720 million tokens, with 422.3 million currently in circulation, according to data from CoinGecko.
Two-Part Capital Raise Led by Major Crypto Firms
The $1 billion capital raise is structured across two key transactions:
- A $500 million private placement led by Hivemind Capital, involving an existing Nasdaq-listed company. This deal is reportedly nearing completion by the end of the month. Former White House Communications Director and SkyBridge Capital founder Anthony Scaramucci is said to be advising on the transaction.
- A second $500 million raise via a special purpose acquisition vehicle (SPAC), coordinated with Dragonfly Capital, is expected to conclude by October, pending regulatory and investor approvals.
Both firms are poised to receive AVAX tokens at below-market prices, positioning them as strategic holders within Avalanche’s ecosystem.
A Broader Strategic Shift Toward Institutionalization
The move signals a deliberate shift toward institutional crypto infrastructure. By anchoring AVAX within corporate-style treasuries, the foundation seeks to emulate strategies seen with Bitcoin adoption by companies like MicroStrategy, albeit with a blockchain-native focus.
The initiative also coincides with growing momentum around Avalanche-based investment products. In August, Grayscale Investments filed with the U.S. Securities and Exchange Commission (SEC) to launch a spot Avalanche ETF, underscoring rising institutional demand for AVAX exposure.
Market Reaction and Historical Context
AVAX is currently trading around $28.80, reflecting a 16% gain over the past seven days. While still far below its all-time high of $135 reached in November 2021, recent developments suggest increasing investor confidence in Avalanche’s long-term trajectory.
Launched in September 2020 by Ava Labs, the Avalanche blockchain has evolved into a leading platform for decentralized applications and smart contracts. Its ecosystem is now positioning itself as a pivotal infrastructure layer for institutional crypto finance.
