Avalanche Foundation Seeks to Raise $1 Billion for Crypto Treasury Companies
The Avalanche Foundation is looking to raise $1 billion to establish two treasury companies dedicated to holding millions of AVAX tokens, as reported by the Financial Times on Thursday.
According to sources familiar with the situation, the AVAX tokens would be acquired from the foundation, which oversees the Avalanche blockchain, at a discounted rate.
The foundation is negotiating to secure up to $500 million through a private investment led by Hivemind Capital in a yet-to-be-disclosed Nasdaq-listed company, with plans to finalize the agreement by the end of the month, as stated by the FT. Former White House press secretary Anthony Scaramucci is providing advisory support for this deal.
A second agreement would involve the formation of an AVAX treasury company through a special purpose acquisition company (SPAC).
This year has witnessed a surge in publicly-listed companies shifting toward a crypto treasury strategy, aiming to replicate the approach taken by Michael Saylor’s Strategy (MSTR), which currently holds close to 640,000 BTC, valued at approximately $73 billion.
However, with the cooling off of the crypto bull market in August, many of these companies experienced drops in their share prices, which may have dampened interest in this model.
In the past 24 hours, AVAX has risen nearly 8%, but it has decreased by about 2.1% since midnight UTC. The wider crypto market, represented by the CoinDesk 20 Index, is up by 0.65%.
The Avalanche Foundation has not responded to CoinDesk’s request for additional comments.
