Avalanche Foundation's $1 Billion Initiative
- The Avalanche Foundation aims to set up US AVAX treasury firms.
- $1 billion fundraising initiative with key financial backers.
- AVAX price surged 8% following the announcement.
The Avalanche Foundation aims to create two AVAX treasury firms in the United States, raising $1 billion through initiatives led by Hivemind Capital and Dragonfly Capital, as announced.
This move underscores significant institutional interest and involvement, potentially leading to AVAX price fluctuations and increased market capitalization.
The Avalanche Foundation has announced a $1 billion initiative aimed at establishing two AVAX treasury companies based in the United States, led by Hivemind Capital and Dragonfly Capital, according to reports by the Financial Times.
Hivemind Capital is leading a $500 million private placement with a Nasdaq-listed company, while Dragonfly Capital is spearheading another $500 million via a SPAC. Anthony Scaramucci, former White House press secretary, offers advisory support.
The announcement prompted an 8% rise in AVAX price, peaking at $29. This marks the highest price since February. Market cap stands at approximately $12.2 billion, making AVAX the 21st-ranked digital asset globally.
Institutional involvement from players such as BlackRock and Visa highlights the increasing business interest in the Avalanche blockchain platform. However, no specific actions or responses from regulators have been reported.
The initiative mirrors similar crypto treasury strategies by major blockchain organizations, but is notable for its scale. Historical examples include ecosystem fundraisings by entities like Ethereum Foundation and Solana Foundation, which did not match this magnitude.
Potential financial impacts include discounted token sales to institutional investors, without current on-chain changes in liquidity or staking flows. Technological and regulatory challenges remain speculative, as precedent and compliance standards evolve in this rapidly growing space.
“Anthony Scaramucci, Crypto Investor & Former White House Press Secretary, ‘As an adviser to the initiative, I believe this funding round represents a significant step in institutional adoption within the Avalanche ecosystem.'” – CoinDesk
