TLDR
- Avalanche Foundation is raising $1 billion to launch a digital asset treasury company.
- The funds will be used to purchase AVAX tokens at a discounted price.
- Hivemind Capital and Dragonfly Capital are leading the two major investment deals.
- The first deal worth $500 million is expected to finalize by the end of the month.
- The second deal, also for $500 million, is expected to close in October.
The Avalanche Foundation is seeking to raise $1 billion to establish a digital asset treasury company. The nonprofit plans to use the funds to purchase AVAX tokens at a discounted price. Industry sources revealed that the foundation aims to launch this project soon.
The $1 billion raise will involve two significant deals with prominent blockchain investors. Hivemind Capital, a New York-based investment firm, is leading one deal worth $500 million. The other deal is with Dragonfly Capital and will also raise $500 million, focusing on a special purpose acquisition vehicle.
Two Deals Set to Drive $1B Raise for AVAX Treasury
Sources familiar with the situation confirmed that Avalanche is finalizing two deals to fund its AVAX treasury project. The first deal will likely conclude by the end of this month. It involves a private placement led by Hivemind Capital, with Anthony Scaramucci advising on the deal.
The second deal is expected to close in October. It is led by Dragonfly Capital, a key player in the blockchain investment world. Both firms plan to purchase AVAX tokens from the Avalanche Foundation at a discounted price, aiming to fuel the growth of the AVAX treasury.
Avalanche’s $1B Strategy to Boost AVAX Scarcity
Avalanche plans to use the raised funds to accumulate AVAX tokens and establish a treasury. At current prices, $1 billion would buy about 34.7 million AVAX, roughly 8% of the total circulating supply. This strategy aims to increase the value of AVAX over time by securing a substantial amount of tokens.
The limited supply of 720 million AVAX further strengthens this strategy. Avalanche’s approach mirrors that of other major cryptocurrencies, like Bitcoin, which also has a capped supply. By consolidating tokens, Avalanche hopes to boost scarcity and enhance its long-term value.
