The Avalanche Foundation is in advanced talks to raise $1 billion through two separate U.S.-based crypto treasury vehicles to purchase millions of its native AVAX tokens at discounted rates. The initiative represents one of the largest institutional fundraising efforts in the blockchain space this year and reflects a growing trend of blockchain organizations using traditional financial structures to support digital assets.
The fundraising is structured through two parallel programs each targeting $500 million. The first transaction is led by Hivemind Capital Partners, a digital asset investment firm, using a Nasdaq-listed company as the investment vehicle. Anthony Scaramucci, the financier and former White House communications director, is involved as an advisor, adding significant credibility and public visibility to the project.
The second program is structured through a special purpose acquisition company (SPAC) backed by venture firm Dragonfly Capital, which has previously participated in Avalanche's $250 million token sale. Dragonfly's involvement brings additional expertise in blockchain and digital asset investments.
The tokens for sale would come from the Foundation's reserves, with approximately 420 million AVAX currently in circulation out of a total supply of 720 million. By channeling tokens into structured treasury vehicles at discounted prices, the Foundation aims to reduce circulating supply while providing institutional investors with preferential entry into the ecosystem.
This $1 billion initiative significantly exceeds Avalanche's previous efforts, including the 2023 $50 million "Avalanche Vista" program for tokenized assets. The strategy could create upward pressure on AVAX's value by reducing available supply, similar to mechanisms like Ethereum's EIP-1559, though success depends on execution timing, scale, and regulatory acceptance of using SPACs and treasury structures for crypto fundraising.