Avalanche Seeks $1B to Launch Treasury-Focused Firms in U.S

TLDR

Table of Contents

Avalanche plans $1B raise for two U.S.-based AVAX treasury firms to boost institutional adoption.
AVAX price jumped 8% in 24 hours after news of treasury-focused deals emerged.
Hivemind and Dragonfly back deals, each targeting $500M for AVAX token purchases.
Over 12 million transactions recorded on Avalanche network in one week amid rising DeFi activity.

The Avalanche Foundation is planning to raise $1 billion to launch two crypto treasury-focused firms in the United States. The effort comes as the network seeks to increase institutional interest in AVAX, its native token. The move follows a growing trend in blockchain-based treasury models.

$1 Billion Raise for AVAX Treasury Firms

The Avalanche Foundation is in active talks to raise $1 billion through two separate deals. One of the deals will create a new U.S.-based crypto treasury firm. The second deal involves converting an existing Nasdaq-listed company into a treasury-focused entity. These vehicles will be designed to purchase digital assets, including AVAX.

The foundation plans to sell AVAX tokens at a discount to these new firms. Sources familiar with the matter say this discount is meant to encourage institutional participation. The deals are backed by Hivemind Capital and Dragonfly Capital. Hivemind is leading the first deal and has secured up to $500 million in private investment. Dragonfly is backing the second deal, which may conclude by October.

The Foundation holds a portion of the total 720 million AVAX tokens, with around 420 million currently in circulation. The planned purchases will be made directly from the Foundation’s holdings. This strategy is expected to inject new capital into the AVAX ecosystem while locking tokens into treasury entities.

Institutional Focus and Market Reaction

The proposed AVAX treasury deals follow a broader industry push toward crypto as a corporate treasury asset. Avalanche is looking to replicate strategies used by Bitcoin-focused treasury firms, which attracted major corporate allocations in past years. However, some recent crypto treasury stocks have struggled to perform in public markets.

One example is SOL Strategies, a Solana-based treasury firm, which began trading recently but saw weak stock movement. Despite that, Avalanche is moving forward with its strategy to bring more long-term institutional players into the network.

Source: TradingView; AVAX Price Daily Chart

News of the treasury funding plans had an immediate effect on the market. The price of AVAX rose over 8% in the last 24 hours. Network activity also increased, with over 12 million transactions recorded in a week. This growth came alongside rising activity in decentralized finance, memecoin trading, and usage of Avalanche’s C-Chain.

Delayed ETF Plans but Long-Term Network Growth

The Avalanche Foundation’s fundraising comes as other institutional efforts face delays. The U.S. Securities and Exchange Commission has postponed decisions on Avalanche-based exchange-traded funds. Grayscale’s Avalanche Trust and VanEck’s ETF application are both awaiting regulatory review. These delays have added uncertainty to near-term institutional adoption.

Despite this, Avalanche continues to gain attention from large financial institutions. BlackRock, Apollo, and Wellington Asset Management have reportedly tested tokenized funds on the Avalanche network. These developments suggest ongoing interest in blockchain infrastructure from traditional finance.

While AVAX still trails Ethereum and Solana in terms of annual price gains, the Foundation’s treasury-focused plan could shift momentum. The strategy to sell tokens at a discount may boost both liquidity and demand. If successful, the move could help Avalanche expand its presence in institutional finance and stabilize long-term token holdings.

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