The Avalanche Foundation, the non-profit group that oversees the Avalanche blockchain, is in advanced discussions with investors to create two digital asset treasury (DAT) companies in the United States, according to a Financial Times report.
$1B goal split into two treasury vehicles
Sources familiar with the matter told FT that Avalanche aims to raise about $1 billion in total, with one deal involving the conversion of an existing Nasdaq-listed company into a treasury vehicle and the other involving the creation of a special-purpose vehicle.
- First deal: Aiming to raise up to $500 million through private investment in a Nasdaq-traded company, led by Hivemind Capital and advised by SkyBridge Capital founder Anthony Scaramucci. This transaction is expected to close by the end of September.
- Second deal: Sponsored by Dragonfly Capital, this SPAC structure seeks to raise up to $500 million, with completion targeted for October.
The companies would then purchase millions of Avalanche’s native token, AVAX, directly from the Avalanche Foundation at a discounted rate.
Positioning Avalanche within treasury trend
This move follows a broader trend of public-traded firms pivoting or merging into crypto treasury companies, entities that raise funds by selling equity or debt, then use those proceeds to accumulate token reserves.
The model gained attention from Strategy, which now holds almost 640,000 BTC ($73 billion). Inspired by that success, other foundations and investors have raised over $16 billion globally this year for crypto-hoarding vehicles, according to Kaiko data.
Earlier this week, Asset Entities (Nasdaq: ASST) shareholders approved a merger with Vivek Ramaswamy-backed Strive Enterprises, pivoting the company into a Bitcoin treasury firm.
Institutional use cases despite cooling market
The talks continue even as shares of publicly listed treasury firms have cooled since August, signaling reduced market enthusiasm. AVAX itself has underperformed compared to rivals Ethereum and Solana despite being tested by BlackRock, Apollo, and Wellington Asset Management for tokenized fund pilots.
Still, Avalanche sees its pivot as a way to align itself with institutional tokenization and capital markets infrastructure. If the $1B raise closes, the foundation will position AVAX as the core reserve asset for treasury vehicles trading on U.S. markets.
AVAX price reaction
The Foundation’s discussions coincided with a sharp uptick in AVAX price. AVAX rose more than 10% in the past 24 hours to $29.11, according to the TradingView data, though it remains below the summer highs experienced by Ethereum and Solana-linked assets.
Of the maximum 720 million AVAX tokens, about 420 million are already in circulation. Treasury purchases of millions of additional tokens at discounted prices could provide short-term market support.
Outlook
While details remain in negotiation, the Avalanche Foundation’s deals, if finalized, would mark among the largest crypto treasury raises in the U.S. public market context this year.
The success of the initiative will hinge on investor appetite for DATs after a summer cooldown and whether the model can replicate the sustained momentum seen in Bitcoin-specific treasuries.
Anastasiia G
Disclaimer: All materials on this site are for informational purposes only. None of the material should be interpreted as investment advice. Please note that despite the nature of much of the material created and hosted on this website, HODL FM is not a financial reference resource, and the opinions of authors and other contributors are their own and should not be taken as financial advice. If you require advice. HODL FM strongly recommends contacting a qualified industry professional.
