The Avalanche Foundation is in advanced talks to raise roughly $1 billion to create two U.S.-based crypto treasury companies that would buy millions of AVAX tokens from the foundation at a discount.
Key Takeaways:
- The firm aims to raise about $1 billion across two deals to form / convert firms that will hold large AVAX treasuries.
- Funds will be used to purchase millions of AVAX from the foundation at a discounted price; one deal is reportedly close to completion.
- AVAX traded higher on the news, with major data providers showing a single-day gain in the high single digits as of this report.
The Financial Times, one of the first to break the story, has reported that Avalanche Foundation is negotiating with investors to raise about $1 billion to set up two U.S. crypto treasury companies that would accumulate and hold AVAX tokens. One vehicle would be a new treasury company backed by private investors; the other would convert an existing Nasdaq-listed company into a vehicle that buys AVAX. According on-chain reports and analysts on X (formerly Twitter), Avalanche would supply tokens to those vehicles at a discounted rate, and at least one of the deals could close within weeks. Crypto Patel also emphasized that the funds will be allocated to “scoop up millions of $AVAX” at a discount.
Treasury model mirrors growing crypto trend
On-chain reports, particularly from The Financial Times and The Block, indicate that the deals involve well-known crypto investment groups and advisers; broader interest in token-backed treasury firms has surged this year, driven in part by companies that raise capital via share sales to buy cryptocurrencies for their balance sheets. The model has attracted more than $16 billion in similar raises this year, even as some treasury company stocks have pulled back. The Avalanche plan appears intended to increase institutional visibility and to position Avalanche as a ledger for tokenized capital markets.
AVAX price jumps after fundraising news
A positive price movement was seen in Avalanche’s native coin AVAX following its announcement of $1B fundraising. COIN360 highlighted on its recent X post about the 2 deals in progress. First deal is a $500M private placement led by Hivemind Capital, while the second deal is a $500M SPAC transaction involving Dragonfly Capital targeted to finalize by October.
TradingView’s real-time market data reports AVAX is trading at approximately $28.98 as of writing (11:45AM UTC), up roughly 8.1% over the past 24 hours while logging intraday highs near $29.45 and lows around $26.76 as per CoinGecko.
If market participants press the rally further, the newly announced treasury demand could tighten circulating supply and amplify volatility.
Analysts weigh risks of discounted AVAX sales
Industry analysts framed the move as a logical play to centralize balance-sheet demand for AVAX and to demonstrate on-chain commitment from the protocol’s steward. However, observers note timing risk: enthusiasm for public crypto-treasury companies has cooled recently, and investor appetite for large share-sales to fund token purchases has proven sensitive to broader market conditions. The FT story noted that recent share price weakness among treasury companies underscores execution risk for new vehicles.
Outlook: investors watch for deal closure
Short term, traders will watch confirmations of the reported deals and whether any filing or investor announcement appears; those events will determine how much of the $1 billion is committed and when token purchases occur. If the deals close and treasuries begin buying, AVAX could experience meaningful supply-side pressure. Conversely, if the market doubts execution, the price move may fade.
Summary
The Avalanche Foundation is in talks to raise $1 billion to establish two U.S.-based treasury companies that will buy millions of AVAX tokens at a discount. One deal involves a new treasury firm backed by private investors, while another may convert an existing Nasdaq-listed company into an AVAX vehicle. The plan mirrors a growing trend of crypto treasury firms raising capital through share sales to accumulate tokens. Following the news, AVAX surged ~8% to $28.98, but analysts caution that discounted sales pose execution and timing risks, especially amid cooling appetite for public crypto-treasury companies.
