The Avalanche Foundation, a nonprofit entity responsible for the Layer-1 blockchain platform known as Avalanche, is currently engaged in advanced discussions to set up two new cryptocurrency treasury firms within the United States.
Avalanche Foundation Aims to Create $1 Billion AVAX Treasury Firms in the US
According to sources cited by the Financial Times, the foundation is looking to secure approximately $1 billion and anticipates that agreements will be finalized shortly.
One of these initiatives includes transforming a company listed on Nasdaq into a treasury entity, which involves plans for a private investment reaching up to $500 million.
This investment round is reportedly spearheaded by Hivemind Capital with guidance from Anthony Scaramucci, founder of SkyBridge Capital. The completion of this deal is expected by the end of September.
The second initiative will occur through a special purpose acquisition company (SPAC) supported by Dragonfly Capital. This venture also aims to raise $500 million and finalize its arrangements in October.
It has been reported that with funds generated from these ventures, the newly established companies will acquire millions of AVAX tokens at discounted rates offered by the Avalanche Foundation.
This strategy aligns with an increasing trend among institutional digital asset treasuries (DAT), where numerous large corporations are purchasing publicly traded firms and converting them into crypto-focused treasuries.
In addition, major investment firms such as BlackRock, Apollo Global Management, and Wellington Asset Management are currently testing out the Avalanche network for fund tokenization purposes. Following this news release, AVAX’s price surged 10.17% over 24 hours to reach $29.11.
*This information should not be considered as financial advice.