Avalanche Foundation Plans $1B Raise to Build US-Based AVAX Treasury Firms

Avalanche Foundation is planning to raise $1 billion through two US-based digital asset treasury firms, aiming to acquire millions of AVAX tokens at a discounted price, according to Financial Times (FT). Per reports, the non-profit group is engaging investors to create two distinct AVAX reserve companies.

Sources familiar with the matter told FT that the funds would allow Avalanche to sell millions of tokens from its reserves at a discounted rate. One entity will function as a dedicated “digital asset treasury” company, while the second will be converted into a similar crypto-focused vehicle.

How the Treasury Deals Are Structured

The first deal is being led by web3 investment firm Hivemind Capital. The partnership is targeting up to $500 million, with investments expected from Nasdaq-listed companies. Former White House Press Secretary and crypto investor Anthony Scaramucci is advising the project. Insiders indicate this deal could close by the end of the month.

The second transaction will involve a special purpose acquisition vehicle (SPAC) sponsored by Dragonfly Capital, also targeting $500 million. This deal is expected to close by October 2025. Like the first, it will acquire AVAX from the foundation at discounted prices.

Both plans aim to consolidate Avalanche’s treasury holdings, using the foundation’s reserves to strategically place AVAX into corporate treasury hands.

Context: Crypto Treasury Market Trends

The announcement comes amid a period of volatility for crypto treasury companies. Firms such as Metaplanet and Strategy have seen share price declines, particularly those focused on Bitcoin and Ethereum accumulation. Despite this, the overall market for corporate crypto treasuries remains active.

• According to Kaiko, companies have raised more than $16 billion in 2025 to purchase crypto assets.
• Treasury activity is concentrated in top-tier digital assets, while smaller altcoins see negligible corporate accumulation.
• Avalanche’s plan is significant in scope compared to most altcoin treasury activities.

Avalanche’s treasury strategy aligns with broader trends in digital asset treasury (DAT) development, where companies acquire crypto assets using internal reserves rather than open-market purchases. Some firms have employed reverse mergers, acquiring publicly-traded companies and converting them into crypto treasury vehicles.

Avalanche’s Market Position

Avalanche remains a prominent layer-1 blockchain, known for handling high transaction volumes. The network aims to establish itself as a key platform for capital markets, competing with Ethereum, Solana, and BNB Chain.

Recent activity on Avalanche includes:

• Recovery of approximately $2 billion in asset value, below the 2021 peak of over $9 billion.
• Deployment of new DeFi protocols, including native versions of Aave and Euler.
• Avalanche C-Chain net inflows exceeded $30 million over the past month.

Despite these developments, AVAX still trails Solana (SOL) and other blue-chip altcoins in terms of market momentum. The corporate treasury initiative could bolster its standing among investors seeking large-scale on-chain exposure.

Partnerships and Investor Involvement

The Financial Times report also mentions that Avalanche is exploring partnerships with firms like BlackRock and Visa to structure the two US treasury entities. These discussions highlight the foundation’s ambition to raise $1 billion, making it one of the largest altcoin treasury initiatives to date.

The first deal with Hivemind Capital and Scaramucci’s advisory role suggests that institutional interest in AVAX remains strong, even as broader crypto market sentiment experiences fluctuations.

AVAX Treasury Mechanics

Key points regarding how the treasury deals will function:

• AVAX tokens will be sourced from Avalanche Foundation reserves.
• Tokens will be sold at a discounted price, providing an incentive for institutional buyers.
• Both treasury companies will operate as structured investment vehicles, enabling large-scale token acquisition without disturbing open-market pricing.
• These transactions follow the trend of structured altcoin reserve strategies, previously seen with Ethereum and Bitcoin-focused corporate treasuries.

This mechanism ensures the foundation retains influence over token distribution while enabling US-based firms to acquire AVAX efficiently.

Conclusion

Avalanche Foundation’s $1 billion treasury initiative demonstrates structured asset management and corporate adoption strategies within the altcoin market. The foundation is selling AVAX at discounted rates to US digital asset treasury firms, bringing institutional investors onboard while keeping token distribution controlled. At the same time, it highlights Avalanche’s strength in fast transactions, DeFi use, and capital market integration.

Resources:

1. Avalanche blockchain aims to raise $1bn for crypto-hoarding companies - report by Financial Times: https://www.ft.com/content/87b5cb20-e86c-4849-8959-ee1f87ffb388

2. Crypto treasury growth among companies - report by Kaiko: https://research.kaiko.com/insights/corporate-treasuries-fuel-crypto-surge

3. Avalanche C-chain inflows data: https://app.artemisanalytics.com/flows?tab=bridgedDestinations&chain=avalanche