- Avalanche plans a $1B raise to create U.S. treasury firms and stockpile AVAX tokens.
- Hivemind and Dragonfly lead $500M deals focused on discounted AVAX purchases.
- AVAX breaks 218-day range, hits $12.35B market cap with $1.07B daily volume.
Avalanche Foundation is preparing a $1 billion fundraising effort to create corporate treasury vehicles in the U.S. The initiative, reported by the Financial Times, comes as the nonprofit behind the Avalanche blockchain pursues its goal of becoming the primary digital ledger for capital markets.
According to reports, two deals are in advanced discussions. One would establish a new digital asset treasury company, while the other would convert an existing firm into a treasury-focused entity. Both are structured to accumulate discounted AVAX tokens from the Foundation.
The move highlights a recent trend in digital finance where corporate treasuries are stockpiling cryptocurrencies, a trend reminiscent of earlier strategies developed around Bitcoin. Despite a lull in stock performance for listed treasury companies, Avalanche is wagering on institutional demand to support adoption for AVAX.
Avalanche Treasury Model: Structure of the Deals
Hivemind Capital is spearheading the first of the two deals to raise as much as $500 million through a private investment into a previously listed company on Nasdaq. Former White House press secretary and crypto investor Anthony Scaramucci is advising on the deal. Hivemind confirmed its involvement but declined to share details.
The second deal, sponsored by Dragonfly Capital, is structured as a special purpose acquisition company (SPAC). It also targets $500 million in funding, though completion may not occur until October. Both vehicles will focus on purchasing millions of AVAX tokens, which are currently priced below peak levels and remain outside the rally that has lifted rivals such as Ethereum and Solana.
Meanwhile, Avalanche has a maximum supply of close to 716 million AVAX tokens, with around 422 million in circulation. The discounted sales are expected to accelerate institutional participation and give the blockchain a stronger foothold in the growing treasury model.
Why the Strategy Matters
Crypto treasuries have raised over $16 billion this year, with institutional players seeking token accumulation strategies. Ethereum—and Solana-linked tokens have boomed in the wake of such activity, whereas AVAX has trailed. However, by providing discounted access to large buyers, Avalanche hopes to gain traction as the infrastructure of choice for financial companies.
BlackRock, Apollo, and Wellington Asset Management have already experimented with tokenized funds using Avalanche, a sign of its growing institutional relevance. The Foundation’s treasury initiative is meant to capitalize on that momentum and create a consistent demand for AVAX tokens.
Still, the idea comes at a time when listed crypto treasury companies have experienced declining stock market enthusiasm. Recent entrants have had difficulty gaining ground with public investors. Avalanche’s approach, however, is oriented to private and strategic placements, which seems to put an emphasis on its bid to differentiate itself from its peers.
AVAX Price Gains Strength with Rising Institutional Focus
The AVAX token has staged a decisive breakout, breaking through a 218-day consolidation stretch following the Foundation’s $1 billion treasury initiative, which grabbed market attention. The rally has been accompanied by surging action, with token market capitalization rising to $12.35 billion and 24-hour trading volume spiking to $1.07 billion.
With momentum now in play, traders are looking to the Fibonacci retracement levels as the next technical destinations. The immediate target is located around $35.25, which marks the 50% retracement zone and is a critical resistance level.
Avalanche (AVAX) Price Chart (Source: TradingView)
A clear move above that level could open the way toward $40, aligning with the 61.8% retracement, and even $55, a level last seen in December 2024. Reclaiming that zone would represent gains of roughly 91% from current prices.
Still, risks remain. The $27 to $21.4 band, once a ceiling, has now turned into a substantial support base. If AVAX fails to hold this range, pressure could send prices lower toward the long-term support trendline. Historically, that structure has provided a reliable safety net for the token during market corrections.
