- The Avalanche Foundation is reportedly seeking to raise US$1 billion to fund the creation of two new companies dedicated to accumulating and managing a digital asset treasury of AVAX tokens.
- The fundraising effort is split into two separate deals: a US$500 million private placement led by Hivemind Capital and a second US$500 million deal through a special purpose acquisition vehicle (SPAC) backed by Dragonfly Capital.
- Following the news, AVAX’s price has surged nearly 8% in the past 24 hours to reach a price of US$29, a level not seen since February of this year.
The Avalanche Foundation is seeking to raise US$1B (AU$1.52B) to finance digital asset treasury and accumulation ventures, according to a Financial Times report citing people familiar with the matter.
The plan involves creating a dedicated treasury company and converting another firm into a vehicle for large-scale crypto accumulation. The funds would be used to buy Avalanche tokens directly from the foundation at discounted rates.
Avalanche currently ranks as the 21st largest cryptocurrency with a market capitalisation of US$12.2B (AU$18.5B), data from CoinGecko shows.
Related: Ripple Teams Up With BBVA to Power Crypto Custody in Spain
Two-Deal Structure
The US$1 billion raise is split across two deals. The first, a US$500 million (AU$760m) private placement, is led by New York-based Hivemind Capital in an already Nasdaq-listed company. That deal is expected to close by month’s end, with Anthony Scaramucci acting as adviser.
The second involves Dragonfly Capital through a special purpose acquisition vehicle, also targeting up to US$500M (AU$760M). Sources said that the deal may not be finalised until October.
AVAX rose nearly 8% in the past 24 hours, now stable at US$29 (AU$43). This is a level not seen since February of this year, after the token collapsed from a height of US$56 (AU$84) in December of 2024.
The effort follows a wave of publicly listed firms adopting crypto treasury strategies modeled on Strategy (formerly MicroStrategy), which has accumulated nearly 640,000 BTC valued at US$73B (AU$111B). Other firms like Metaplanet and HaskKey are buying more Bitcoin than ever as well.
Related: Crypto Miners Surge on US$17.4B Microsoft–Nebius AI Chip Deal
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