Avalanche Foundation Aims for $1B Treasury Boost: AVAX Gains Momentum in 2025
- Why Is Avalanche Creating $1B Worth of Treasury Companies?
- How Exactly Will the $1B Structure Work?
- What Does This Mean for AVAX's Market Position?
- How Does This Fit Into Broader Crypto Trends?
- What's Next for Avalanche Investors?
- FAQs
The Avalanche Foundation is making waves with plans to raise $1 billion through two U.S.-based treasury companies dedicated to holding AVAX tokens. This strategic move comes as AVAX prices surge 17% weekly, pushing Avalanche’s market cap past $12 billion. Here’s why this matters for crypto investors.
Why Is Avalanche Creating $1B Worth of Treasury Companies?
The non-profit behind Avalanche blockchain is executing a bold playbook. They're structuring two public U.S. companies – each targeting $500 million – to systematically acquire and hold AVAX tokens. This isn't just about price support; it's a long-term bet on institutional adoption. According to CoinMarketCap data, AVAX's circulating supply stands at 420 million tokens (of 720 million max), leaving room for strategic distribution.
How Exactly Will the $1B Structure Work?
The foundation is playing chess while others play checkers. The first $500 million deal involves a Nasdaq-listed company advised by Anthony Scaramucci (yes, the "Mooch" from Trump's White House) and structured by Hivemind Capital. The second tranche routes through a Dragonfly Capital-backed SPAC. Both get sweetheart deals – discounted AVAX purchases directly from the foundation's vault. Smart move? Dumb money? Either way, it's shaking up the crypto treasury playbook that MicroStrategy pioneered.
What Does This Mean for AVAX's Market Position?
Let's talk numbers. AVAX jumped 17% last week (per TradingView charts) while bitcoin barely moved. The treasury plans appear to be working – at least in the short term. But here's the kicker: Avalanche now ranks third in development activity among real-world asset blockchains according to Santiment. That's the kind of metric that makes crypto OGs nod approvingly while scrolling through their portfolios.
How Does This Fit Into Broader Crypto Trends?
2025's defining narrative? Corporate treasuries hoarding crypto like digital dragons. ethereum and Solana saw similar bumps from institutional accumulation. Avalanche's play differs though – they're not waiting for companies to discover AVAX; they're creating the vehicles themselves. It's like building your own demand. The BTCC research team notes this could set a precedent for other layer-1 chains struggling with token distribution.
What's Next for Avalanche Investors?
The foundation expects both deals to close within weeks. Meanwhile, AVAX shows classic "buy the rumor" behavior – up 16% monthly despite a 1% 24-hour dip. For traders watching the 4-hour charts, that volatility spells opportunity. For HODLers? Maybe time to check those staking rewards again. Either way, Avalanche just made the crypto treasury game more interesting.
FAQs
How much AVAX is currently in circulation?
Approximately 420 million AVAX tokens are circulating as of September 2025, with a maximum supply capped at 720 million.
Who is advising Avalanche on these treasury deals?
Anthony Scaramucci (SkyBridge Capital) is consulting on the first $500 million deal, while Dragonfly Capital backs the second tranche.
What exchange tracks AVAX price data most accurately?
Major exchanges like BTCC and Coinbase provide reliable AVAX pricing, with TradingView offering comprehensive charting tools for technical analysis.
