The Avalanche Foundation is preparing a $1 billion treasury expansion in the United States. The plan involves establishing two crypto-focused treasury companies to give investors regulated exposure to Avalanche’s AVAX token while boosting liquidity.
Dual approach to treasury building
According to the Financial Times, the strategy involves forming one new treasury entity while converting an existing Nasdaq-listed company into a dedicated vehicle.
Each initiative is designed to raise $500 million. Funds will be used to purchase AVAX tokens directly from the foundation at discounted terms.
The first initiative is led by Hivemind Capital. It focuses on a private investment in a Nasdaq-listed firm and has support from Anthony Scaramucci, founder of SkyBridge Capital, who is serving as an advisor. People close to the matter expect the deal to close by late September.
The second initiative is backed by Dragonfly Capital. It centers on a Special Purpose Acquisition Company (SPAC) targeting another $500 million.
This arrangement is scheduled to close in October, giving Avalanche two distinct fundraising channels.
Boosting AVAX market presence
Avalanche is using the US treasury structure to attract institutional investors who want exposure to digital assets through regulated paths.
By securing commitments in the United States, the foundation aims to increase AVAX liquidity and broaden investor participation.
If both transactions succeed, the combined fundraising will rank among the most ambitious treasury-building efforts by any Layer 1 blockchain foundation in recent years.
The funds are earmarked for large-scale token purchases, which analysts expect to support Avalanche’s market activity.
The plan also underscores Avalanche’s push to strengthen its ecosystem through financial engineering.
The Nasdaq-linked deal offers immediate market credibility, while the SPAC approach allows new capital formation in a regulated structure.
Market reaction has already been visible. AVAX is gaining momentum as traders anticipate fresh demand once the treasury entities become active buyers.
The move could set a precedent for how other blockchain foundations structure large-scale capital raises.
The Avalanche Foundation is now in advanced talks with investors to finalize both arrangements. The outcome will determine whether the network can secure the full $1 billion in capital.