Avalanche Foundation’s $1 Billion Treasury Move: Is AVAX Primed for Takeoff?

Avalanche just dropped a billion-dollar bombshell—and the crypto world is watching.

The foundation's massive treasury deployment signals aggressive confidence in its own ecosystem. We're talking strategic acquisitions, ecosystem investments, and protocol development all funded by that jaw-dropping war chest.

Market Impact

This isn't just pocket change—it's a statement. While traditional finance still debates whether crypto is 'real,' Avalanche is putting its money where its mouth is. The move could trigger massive liquidity inflows and ecosystem growth.

AVAX Price Trajectory

History shows that major treasury moves often precede significant price action. With $1 billion in play, the potential for AVAX to break current resistance levels looks increasingly plausible—though as any seasoned trader will tell you, past performance doesn't guarantee future results (especially in crypto).

Because nothing says 'financial revolution' like throwing a billion dollars at the problem while Wall Street still can't figure out how to store private keys properly.

Avalanche Foundation’s $1 Billion Buy Plan

One vehicle, led by Hivemind Capital, WOULD seek up to $500 million via a Nasdaq-listed company with Anthony Scaramucci advising; a second, sponsored by Dragonfly Capital, would be a $500 million SPAC. People familiar said the deals could close within weeks; Hivemind confirmed it was working on a deal, while the foundation declined to comment. Currently, AVAX has a 720 million max supply with about 420 million in circulation.

Digital-asset treasury companies—public or listed vehicles that raise capital to hold crypto on balance sheet—have proliferated this year and helped drive new demand across tokens. In parallel to Avalanche’s effort, Hong Kong’s HashKey Group this week unveiled a $500 million fund dedicated to DAT strategies, underscoring institutional interest in standardized structures for accumulating digital assets.

Market plumbing is tightening at the same time. Nasdaq has moved to increase scrutiny of companies that issue stock primarily to buy crypto, a shift that has already pressured several “crypto treasury” names and could slow timelines for some new formations. The exchange is seeking enhanced disclosures and in some cases shareholder votes for such capital raises.

Scaramucci’s presence in the Avalanche orbit predates today’s development. On August 19, SkyBridge Capital said it would tokenize $300 million of hedge fund assets on Avalanche in partnership with Tokeny and Apex Group. “Tokenizing our funds on Avalanche … represents a significant step forward in modernizing the alternative investment landscape,” Scaramucci said at the time.

Avalanche has also courted traditional finance through tokenization pilots and money-market-style products. VanEck, working with Securitize, launched a tokenized US Treasury fund whose tokens exist on Avalanche alongside other chains, part of a broader push positioning the network for capital-markets use cases referenced in the FT report.

Dragonfly’s involvement tracks with prior Avalanche financing. In December 2024 the foundation raised $250 million via a locked token sale led by Galaxy Digital, Dragonfly and ParaFi, providing a precedent for large, structured AVAX transactions backed by major crypto investors.

Will It Impact AVAX Price?

If completed as described by the FT, the two US vehicles would initially acquire discounted AVAX held by the foundation, with the first deal targeted to wrap by month-end and the SPAC later.

Due to the transactions being executed off-exchange directly with the Foundation, they will not mechanically MOVE spot order books at execution. However, the signaling of $1 billion in structured demand can still influence price indirectly via positioning and liquidity—tightening effective float if tokens are locked or staked, or capping rallies if discounted inventory is later hedged or distributed—so the net effect hinges on lockups, retention, and on-chain demand growth.

At press time, AVAX traded at $28.72.