Avalanche Targets $1B Fund for Two AVAX Treasuries
Avalanche Foundation has launched a $1 billion fundraising campaign to establish two AVAX treasuries in the US. The first round targets $500 million in private investment led by Hivemind Capital with Anthony Scaramucci advising, set to close this month. The second round involves a SPAC sponsored by Dragonfly Capital aiming to raise another $500 million by October.
Both deals will acquire discounted AVAX tokens directly from the foundation, which holds 720 million AVAX, of which 420 million are circulating. This AVAX treasury strategy mirrors recent institutional moves by BlackRock and Visa, aiming to enhance liquidity and market presence as AVAX approaches the key $30 level.
Market reaction has been positive, with AVAX rallying almost 8% over the past 24 hours, despite a 2.1% dip since midnight UTC, while the CoinDesk 20 Index rose 0.65%. Crypto traders view these AVAX treasury initiatives as a bullish signal that could support token demand and price stability.
Bullish
The Avalanche Foundation’s $1 billion treasury campaign represents a strong commitment to holding and supporting AVAX, which could drive demand and reduce sell-side pressure. In the short term, the private round led by Hivemind and the SPAC by Dragonfly signal institutional confidence, likely fueling price momentum as the tokens are acquired at a discount. The recent 8% rally over 24 hours demonstrates positive market sentiment. In the long term, building sizable treasuries enhances on-chain liquidity and market depth, potentially leading to more stable price floors. Overall, these factors point to a bullish outlook for AVAX.