The Avalanche Foundation is reportedly preparing to raise $1 billion to launch two dedicated crypto treasury companies, according to a report by the Financial Times. The move would involve selling millions of AVAX tokens, the native asset of the Avalanche blockchain, at discounted prices to investors.
The initiative comes as Avalanche looks to strengthen its financial infrastructure and expand its long-term role within the broader digital asset ecosystem. One of the proposed treasury companies is expected to emerge from a private investment deal of up to $500 million, led by Hivemind Capital in partnership with an unnamed Nasdaq-listed company.
The deal could be finalized by the end of the month, with former White House press secretary Anthony Scaramucci reportedly advising on the transaction.
A second initiative would establish another AVAX treasury company through a special purpose acquisition company (SPAC), further diversifying Avalanche’s treasury management strategies.
Crypto Treasury Trend Gains Momentum
The foundation’s plan reflects a wider trend among publicly-listed companies adopting crypto treasury strategies, modeled after MicroStrategy (MSTR). The software intelligence firm, under Michael Saylor’s leadership, has aggressively accumulated Bitcoin and now controls nearly 640,000 BTC worth an estimated $73 billion.
This approach has inspired other institutions to consider adding crypto assets to their balance sheets as a hedge against inflation and as a long-term strategic bet on digital value. Avalanche appears to be aligning itself with this wave, though its choice to pursue AVAX-based treasuries distinguishes it from the Bitcoin-first approach seen elsewhere.
However, enthusiasm for treasury diversification into crypto has cooled slightly. The recent pullback in the crypto bull market throughout August led to declines in share prices for many companies tied to similar strategies. This has raised questions about the sustainability of corporate crypto treasury adoption during volatile market cycles.
Market Response and Outlook
Despite the tempered sentiment, AVAX has seen a short-term price bump. The token advanced nearly 8% in the last 24 hours following the news, though it later retraced about 2.1% since midnight UTC. In comparison, the broader crypto market, as tracked by the CoinDesk 20 Index, rose 0.65% over the same period.
While the Avalanche Foundation has yet to officially comment, the reported $1 billion raise signals a bold attempt to solidify AVAX’s positioning within institutional and corporate frameworks. If successful, it could provide both liquidity and credibility to Avalanche’s ecosystem while drawing investor attention at a time when blockchain projects are competing for long-term relevance.
For now, much hinges on the outcome of the private investment deal and the SPAC-led treasury plan. Together, these moves could shape the future of Avalanche’s role in crypto treasury adoption, putting it in the same conversation as established corporate pioneers like MicroStrategy.
