The Avalanche Foundation, the entity behind the blockchain used by BlackRock, Visa and other major investors, is discussing with investors the creation of two crypto treasury structures. The goal is to mobilize around $1 billion and invest it into large-scale purchases of AVAX tokens at a discount, according to the Financial Times.
Two Instruments With One Goal
According to sources familiar with the talks, the foundation plans to simultaneously launch a new company and transform an existing one into a treasury structure. Both deals are expected to close in the coming weeks.
The first is a private placement worth up to $500 million through an existing Nasdaq-listed company. The deal is being led by Hivemind Capital. Crypto investor and former White House press secretary Anthony Scaramucci is also involved as an advisor. Hivemind confirmed its participation but did not disclose details. Scaramucci did not comment.
The second deal involves a SPAC (special purpose acquisition company) sponsored by venture capital firm Dragonfly Capital. It is also targeting up to $500 million, although the timeline may shift to October. Dragonfly has not yet commented.
Betting On AVAX At A Discount
Both companies will gain access to tokens directly from the Avalanche Foundation at a discount. A total of up to 720 million AVAX has been issued, with about 420 million currently in circulation.
The foundation intends to use the raised funds to purchase tokens and thereby stimulate its ecosystem. With competing assets on Ethereum and Solana gaining momentum, AVAX has not yet participated in a major rally. The foundation hopes to change this through direct capital injections.
Investor Interest And Fading Hype
Despite the overall decline in interest in public crypto treasury companies, Avalanche continues to pursue a long-term strategy. The blockchain is already being tested by major asset managers, including BlackRock, Apollo, and Wellington Asset Management. Tokenized versions of investment funds are being trialed on the network.
The model in which funds buy tokens by issuing stocks and bonds remains popular. According to Kaiko, such companies raised more than $16 billion in 2025. However, the falling prices of some of these structures may signal cooling interest in the stock market.
Nevertheless, the Avalanche Foundation continues to operate through a non-profit structure. This format allows it to bypass regulatory restrictions in the US and operate from low-tax jurisdictions.
Read Also:
- Chainlink and Avalanche Top the List of Most Active RWA Projects
- Avalanche Launched Free NFT Pass For Gamers With Rewards
- NFT Game Forgotten Playland Integrates With Avalanche and Launches In-Game Asset Trading
This post is for informational purposes only and is not an ad or investment advice. Please do your own research making any decisions.