Avalanche Foundation Eyes $1B Fund to Build Crypto Treasury Firms

The Avalanche Foundation, the non-profit group supporting the Avalanche blockchain, is holding advanced talks to set up two crypto treasury companies in the United States. According to the Financial Times, the foundation is preparing to raise as much as $1 billion through two major deals, which could be finalized in the coming weeks.

Avalanche’s Crypto Treasury Push Backed By Major Investors

As announced, the plan involves two separate deals. The first will create a new crypto treasury company through a private investment in a Nasdaq-listed firm. 

The plan is to raise $500 million, which will be led by Hivemind Capital with advice from SkyBridge Capital founder Anthony Scaramucci. Ongoing negotiations suggest the deal could be finalized by the end of September.

The second deal focuses on converting an existing company into a treasury vehicle. Well-known investor Dragonfly Capital is sponsoring this effort through a special purpose acquisition company (SPAC), also targeting $500 million. 

This deal is expected to close in October. Together, both companies would act as digital asset treasuries (DATs), with a central focus on Avalanche’s native token, AVAX.

Avalanche to Use New Funds for AVAX Purchases as DAT Trend Grows

The proceeds from these investments will be used to buy millions of AVAX tokens, which the Avalanche Foundation will later sell at lower prices. This is part of a wider trend where companies set up digital asset treasuries (DATs) to hold large amounts of cryptocurrencies.

Recently, larger firms have also started to acquire publicly traded companies and convert them into crypto treasury vehicles through reverse mergers. 

Earlier this week, shareholders of Asset Entities (ASST), a Nasdaq-listed company, approved its planned merger with Vivek Ramaswamy’s Strive Enterprises. This deal will turn the company into a Bitcoin-focused treasury.

Avalanche Gains Momentum as Institutions Embrace Tokenization

The Avalanche blockchain is already attracting big financial firms as it becomes a key player in improving traditional finance. 

It has been adopted by popular asset managers like BlackRock, Apollo, and Wellington, which are testing ways to move traditional assets onto the blockchain. Experts say Avalanche might be the upgrade tradFi needs, as it is seen as a helpful tool for fixing outdated financial systems.  

If the foundation successfully raises the planned $1 billion, it could make Avalanche stronger as both a tech platform and an investment option. For institutional players, it offers a way to enter crypto markets while relying on structures that look familiar to traditional finance.

The market has already responded positively to the news. AVAX, the blockchain’s native currency, jumped more than 10% in the past 24 hours, trading at $29.11, according to CoinMarketCap data. This rise shows growing trust that Avalanche is advancing both as a technology and as a financial system.