Avalanche Foundation seeks to raise $1B for two crypto treasury firms - report

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The Avalanche Foundation, the nonprofit organization behind the Avalanche blockchain, is in advanced talks with investors over deals to raise $1B to establish two U.S. crypto treasury companies hoarding discounted AVAX (AVAX-USD [https://seekingalpha.com/symbol/AVAX-USD]) tokens, according to a media report published Thursday.

Specifically, the Foundation is looking to finalize a deal at the end of the month to raise as much as $500M through a private investment led by Hivemind Capital, with crypto advocate and former White House press secretary Anthony Scaramucci providing counsel, the _Financial Times_ reported, citing people with knowledge of the discussions.

The second deal, meanwhile, involves forming an AVAX (AVAX-USD [https://seekingalpha.com/symbol/AVAX-USD]) treasury vehicle via a special-purpose acquisition company sponsored by Dragonfly Capital, targeting another $500M raise that may not close until October, the people added.

Both ventures would buy millions of AVAX (AVAX-USD [https://seekingalpha.com/symbol/AVAX-USD]) tokens held by the Avalanche Foundation, the article said [https://www.ft.com/content/87b5cb20-e86c-4849-8959-ee1f87ffb388].

AVAX (AVAX-USD [https://seekingalpha.com/symbol/AVAX-USD]), the native token of the Avalanche blockchain, slipped 1.8% over the last 24 hours to $28.96 at 10:39 a.m. ET.

A wave of publicly-traded companies has shifted toward crypto-treasury strategies this year, encouraged by the Trump administration's friendlier regulatory posture. Such firms include the likes of Strategy (MSTR [https://seekingalpha.com/symbol/MSTR]), BitMine Immersion Technologies (BMNR [https://seekingalpha.com/symbol/BMNR]), SharpLink Gaming (SBET [https://seekingalpha.com/symbol/SBET]) and ETHZilla (ETHZ [https://seekingalpha.com/symbol/ETHZ]).

The Avalanche Foundation did not immediately respond to Seeking Alpha's request for comment.

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