Avalanche Foundation Eyes $1B Raise to Fund Two Crypto Treasury Companies: FT
The Avalanche Foundation is reportedly preparing a $1 billion AVAX treasury raise aimed at establishing two dedicated crypto treasury firms. These entities would be designed to manage and hold millions of AVAX tokens, providing stronger financial backing for the Avalanche ecosystem. The initiative marks one of the foundation’s largest funding moves and highlights its strategy to expand treasury management in the crypto space.
According to the Financial Times, the fundraising structure would allow investors to acquire AVAX tokens directly from the foundation at a discounted rate. By doing so, the foundation not only secures capital but also encourages deeper investor participation. If completed, this raise could strengthen Avalanche’s market presence and long-term sustainability by ensuring a well-capitalized treasury base.
Why the Avalanche Foundation $1B AVAX treasury raise matters
If completed, the plan could put more AVAX in long-term corporate hands, potentially tightening circulating supply while funding ecosystem growth. It also signals that token-treasury strategies popularized by high-profile Bitcoin holders—are being adapted to other networks with a more institutional wrapper.
Deal structure at a glance
Two vehicles, one mandate:
The foundation is working on two separate treasury companies designed to accumulate and manage AVAX.Discounted token purchases:
AVAX would be acquired from the foundation at a discount, aligning early backer incentives with long-run stewardship.Private investment via a listed partner:
One deal reportedly targets up to $500M through a private investment led by Hivemind Capital in an unidentified Nasdaq-listed company, with former White House press secretary Anthony Scaramucci advising.A SPAC route for the second vehicle:
The other leg would form an AVAX treasury company via SPAC, providing a ready made public-market shell and faster path to capital access.
Market reaction and near-term risks
AVAX rose nearly 8% in the last 24 hours, though it was down ~2.1% since midnight UTC as of the report, while the broader CoinDesk 20 was +0.65%. That mixed tape underscores a key risk: if volatility persists, balance-sheet token strategies can magnify equity swings for any public vehicles that hold the asset.
How this fits the corporate crypto-treasury trend
Public companies this year have increasingly pivoted to crypto treasuries, aiming to echo MicroStrategy’s high-conviction approach 640,000 BTC ($73B) at last report. But August’s market cooling knocked many of these stocks, a reminder that the model shines in bull cycles and can sting in pullbacks.
What to watch from here
Pricing and lockups:
The precise discount to spot, any vesting/lockup terms, and treasury governance will shape investor appetite.Regulatory posture:
As token-holding corporates broaden, disclosures, fair-value accounting, and risk controls will be scrutinized.Ecosystem deployment:
Proceeds and treasury strategy could support validators, liquidity programs, or grants key signals for builders.
Conclusion
The Avalanche Foundation’s planned $1 billion AVAX treasury raise could play a key role in formalizing token management and widening capital access for the Avalanche ecosystem. By seeding new treasury entities, the initiative may bring a more structured approach to long-term token stewardship.
However, the outcome will largely depend on how discounts are structured for investors, the prevailing market climate, and the strength of governance practices. Balancing attractive investor terms with sustainable on-chain growth will be critical. If executed well, the raise has the potential to reinforce confidence and provide lasting support for Avalanche’s development.
FAQs
Q1 . What is the Avalanche Foundation $1B AVAX treasury raise?
A : It’s a plan to fund two treasury companies that buy AVAX—reportedly at a discount from the foundation to steward tokens and support the ecosystem.
Q2 . How will the two treasury companies differ?
A : One involves a private investment linked to a Nasdaq-listed firm; the other forms an AVAX treasury company via a SPAC, offering faster access to public capital.
Q3 . Why use discounted token purchases?
A : Discounts can compensate early risk, encourage long-term holding, and align incentives with treasury mandates and potential lockups.
Q4 . How does this compare with MicroStrategy’s model?
A : It adapts the corporate crypto-treasury playbook to AVAX, but via dedicated vehicles and equity structures rather than a single operating company.
Q5 . What are the main risks if markets cool?
A : Volatility can widen NAV discounts/premiums, pressure equity prices, and complicate fundraising challenges the Avalanche Foundation $1B AVAX treasury raise must manage with clear governance.