Avalanche Foundation Eyes $1 Billion Raise to Launch AVAX Treasury Companies

Details of Avalanche Foundation’s fundraising

The Avalanche Foundation, the non-profit entity leading the development of the Avalanche (AVAX) blockchain, is reportedly in advanced talks to raise up to $1 billion to establish two cryptocurrency treasury companies in the United States, according to the Financial Times.

According to FT, Avalanche Foundation is in talks with investors to set up two US “digital asset treasury” companies, aiming to raise $1B to buy millions of AVAX at a discount. The first, led by Hivemind Capital, seeks up to $500M via a Nasdaq-listed firm with crypto investor and…

— Wu Blockchain (@WuBlockchain) September 11, 2025

The fundraising initiative involves two separate deals. The first is a $500 million private investment led by Hivemind Capital into an unidentified Nasdaq-listed company. The transaction, advised by SkyBridge Capital founder and former White House Communications Director Anthony Scaramucci, is expected to close by the end of September. The second deal is structured as a $500 million special purpose acquisition company (SPAC) backed by Dragonfly Capital, which is anticipated to be finalized in October.

Both entities are expected to purchase millions of AVAX tokens directly from the Avalanche Foundation at a discounted rate. This strategic sale aims to provide institutional investors with streamlined exposure to AVAX, while simultaneously boosting the foundation’s capital reserves to further support network development and institutional adoption.

At current market prices, the $1 billion investment would equate to approximately 34.7 million AVAX, or roughly 8% of the 422.3 million tokens currently in circulation. The total maximum supply of AVAX is capped at 720 million tokens, giving the foundation significant reserves to facilitate such deals.

AVAX is currently the 15th largest crypto asset by market capitalization, boasting a market cap of $12.24 billion. The coin is currently in striking range of advancing up the rankings, as the 14th-ranked XLM has a market cap of $12.37 billion and the 13th-ranked USDE has a market cap of $13.19 billion.

Broader context and market implications

This approach mirrors a growing trend in the crypto space where publicly-listed companies are restructured or acquired to serve as digital asset treasuries (DATs). The model gained momentum following Strategy’s aggressive Bitcoin accumulation strategy, and has seen firms raise over $16 billion in 2025 alone. Recent examples include Asset Entities’ transformation into a Bitcoin-focused treasury via a merger with Strive Enterprises.

Despite the growing interest in tokenized finance and institutional crypto exposure, AVAX has underperformed relative to peers like Ethereum and Solana during recent market rallies. However, the Avalanche network has attracted attention from major financial players including BlackRock, Apollo, and Wellington Asset Management for tokenized fund trials.