Avalanche Foundation Plans $1B for AVAX Treasury Firms

While many crypto treasury firms have seen their share prices tumble recently, signaling weaker investor enthusiasm, Avalanche Foundation is pressing forward with ambitious plans. The nonprofit group that manages the Avalanche blockchain is in discussions with investors to launch a new digital asset treasury company and convert another existing business into the same model. Reports state the foundation is targeting $1 billion in total, aiming to wrap up both deals within weeks.

Breaking Down the $1 Billion Structure

The initiative will see Avalanche create two public companies in the US, designed to buy and hold its native token, AVAX. By funnelling substantial capital into these vehicles, the foundation hopes to secure long-term backing for its network and strengthen its position as a leading digital ledger for global markets.

The plan involved setting up two treasury companies, each tied to deals valued at up to $500 million. Here’s how it was structured:

• The first arrangement was structured by Hivemind Capital in an already listed Nasdaq company, with sources indicating it was expected to close before the end of the month.
• Anthony Scaramucci, formerly White House communications director and now a leading digital asset investor, was providing guidance during the process.
• The second deal, also worth $500 million, involved a special purpose acquisition company supported by Dragonfly Capital, though this transaction was not expected to be finalized until October.
• Both companies were structured to begin with discounted purchases of AVAX tokens directly from the Avalanche Foundation, ensuring substantial holdings of the asset are placed with public firms.

Avalanche Positions AVAX Within Corporate Crypto Shift

Avalanche’s token supply is capped at 720 million AVAX. Figures show that about 420 million are already circulating, leaving close to 300 million that can still be released. By directing sales through the two treasury companies, the foundation expects to manage distribution in a way that encourages stability and long-term growth.

The decision aligns with a broader shift among listed companies this year, as several have embraced a treasury-led approach to digital assets inspired by Michael Saylor’s firm, Strategy, which is widely known for building substantial bitcoin reserves. The model has since been adopted by other firms aiming to strengthen their balance sheets with crypto holdings.

Tokens linked to Ethereum and Solana have also advanced in recent months. Both gained value on the back of extensive fundraising by groups planning to stockpile crypto assets. Avalanche’s current move follows the same trend, with the aim of putting its own token at the center of corporate accumulation.

Avalanche’s Market Momentum and Growth

Recent figures show that AVAX has climbed 17% over the past week and 16% in the past month. Despite that rise, the token was marginally lower by 1% in the past 24 hours. The mixed pattern suggests ongoing momentum, though with short-term fluctuations.

Beyond market performance, Avalanche has also shown strong technical progress. Data platform Santiment reported on X that Avalanche ranked third in development activity among projects focused on real-world assets. The network’s market value has now surpassed $12 billion, supported by steady growth in recent weeks.