Avalanche Foundation in Talks for $1 Billion Digital Asset Treasury Deals
The Avalanche Foundation is negotiating two US digital asset treasury vehicles to raise about $1 billion aimed at purchasing millions of AVAX at a discount.
Avalanche Foundation’s $1 Billion Buy Plan
- One vehicle, led by Hivemind Capital, targets $500 million through a Nasdaq-listed company with Anthony Scaramucci advising.
- The second vehicle, sponsored by Dragonfly Capital, is a $500 million SPAC.
- The deals may close within weeks; Hivemind confirmed its involvement while the foundation has not commented.
- AVAX has a maximum supply of 720 million, with around 420 million currently in circulation.
Digital-asset treasury companies are gaining traction this year, driving demand for tokens. Concurrently, Hong Kong’s HashKey Group introduced a $500 million fund for digital asset treasury strategies, reflecting institutional interest.
Nasdaq is increasing scrutiny on companies raising capital primarily for crypto purchases, which may affect timelines for new formations.
Scaramucci's connection to Avalanche includes SkyBridge Capital's plan to tokenize $300 million of hedge fund assets on the network, enhancing the alternative investment landscape.
Avalanche is pursuing traditional finance through tokenization pilots and money-market products. VanEck launched a tokenized US Treasury fund on Avalanche, indicating a push for capital-markets applications.
Dragonfly’s previous participation in Avalanche financing included a $250 million locked token sale in December 2024, establishing a precedent for large structured AVAX transactions.
Will It Impact AVAX Price?
- If finalized, the vehicles will acquire discounted AVAX from the foundation, with the first deal expected to conclude by month-end.
- The off-exchange nature of these transactions won't directly impact spot order books but could indirectly influence price through signaling of demand.
- Potential effects on liquidity include tightening the effective float or capping rallies if discounted inventory is later hedged or distributed.
At press time, AVAX was trading at $28.72.
