Avalanche Foundation Targets $1 Billion Treasury War Chest for AVAX Ecosystem Expansion

Avalanche goes big—really big. The foundation behind the layer-1 blockchain is mobilizing a whopping $1 billion to turbocharge its treasury vehicles. That’s billion with a ‘B,’ in case any traditional finance folks missed the decimal place.

Why the mega-raise? Simple: growth. AVAX isn’t playing defense—it’s loading up for serious ecosystem expansion. Think DeFi, gaming, NFTs, and enterprise adoption. The goal? Cement Avalanche as a top-tier chain, not just another also-ran.

Timing is everything. With institutional money finally warming to crypto—albeit cautiously—Avalanche is striking while the iron’s hot. A billion-dollar treasury sends a message: we’re here to build, not speculate.

But let’s be real—raising a billion in crypto isn’t like pitching VCs over oat milk lattes. This is a high-stakes move in a volatile market. One wrong step, and even the most bullish narrative can crumble. Then again, since when has crypto played it safe?

Love it or doubt it, Avalanche is going all in. And in this game, fortune favors the bold—or the well-funded.

The Avalanche Foundation is pursuing deals to raise approximately $1 billion through two cryptocurrency treasury companies in the United States, targeting institutional investors seeking exposure to its AVAX token.

The foundation is in advanced discussions to launch one digital asset treasury company and convert an existing firm into such a vehicle, according to sources familiar with the discussions, the Financial Times reported today.

The first deal, led by Hivemind Capital and advised by Anthony Scaramucci, targets $500 million through a Nasdaq-listed firm. The second involves a $500 million SPAC backed by Dragonfly Capital, with completion expected by October.

Both vehicles would purchase AVAX tokens from the Avalanche Foundation at discounted prices, providing the foundation with capital while offering investors exposure to the blockchain's native cryptocurrency. The foundation holds significant reserves from the maximum supply of 720 million AVAX tokens, with approximately 420 million currently in circulation.

The deals WOULD provide Avalanche Foundation with significant funding to support network development and adoption initiatives while creating new investment vehicles for institutions seeking blockchain exposure.

The fundraising effort comes as Avalanche positions itself as a preferred blockchain for traditional finance applications. Major investment firms including BlackRock, Apollo, and Wellington Asset Management have tested tokenized fund versions on the network, though AVAX has underperformed compared to competing blockchains like ethereum and Solana.

The crypto treasury company model gained prominence following Strategy's Bitcoin accumulation approach, inspiring numerous firms to raise capital specifically for cryptocurrency purchases. Companies following this model have raised more than $16 billion this year, the FT noted, though recent share price declines among crypto treasury firms suggest potential market fatigue.

Avalanche Foundation operates as a non-profit organization supporting the blockchain ecosystem through education and community development. Like many blockchain foundations, it maintains reserves in low-tax jurisdictions while avoiding U.S. securities regulations through its non-profit structure.

The planned treasury vehicles represent Avalanche's bid to compete with other blockchain networks for institutional adoption and investment capital. While the network has gained traction among traditional finance firms for tokenization applications, AVAX's token performance has lagged behind competitors during the recent crypto market rally.