Avalanche Foundation Targets $1B Treasury War Chest to Supercharge AVAX Ecosystem

Avalanche goes big—really big—with a billion-dollar treasury play.

The Foundation's massive capital raise aims to turbocharge ecosystem development while making traditional VCs sweat. Because who needs middlemen when you've got a decentralized war chest?

Building the next generation of DeFi

This isn't just about stacking AVAX—it's about funding the infrastructure, applications, and protocols that'll make Ethereum maxis nervous. The Foundation's putting its money where its mouth is, backing builders who actually ship code rather than just PowerPoint decks.

Market makers meet their match

With $1B in dry powder, Avalanche could become the ultimate market maker in its own ecosystem—liquidity provisioning, grant programs, and strategic investments all funded from a single massive treasury. Traditional finance would charge 2-and-20 for this service.

Watch this space—the foundation just raised the stakes for every Layer 1 in crypto.

TLDR

• Avalanche Foundation is raising $1 billion to launch a digital asset treasury company.
• The funds will be used to purchase AVAX tokens at a discounted price.
• Hivemind Capital and Dragonfly Capital are leading the two major investment deals.
• The first deal worth $500 million is expected to finalize by the end of the month.
• The second deal, also for $500 million, is expected to close in October.

The Avalanche Foundation is seeking to raise $1 billion to establish a digital asset treasury company. The nonprofit plans to use the funds to purchase AVAX tokens at a discounted price. Industry sources revealed that the foundation aims to launch this project soon.

The $1 billion raise will involve two significant deals with prominent blockchain investors. Hivemind Capital, a New York-based investment firm, is leading one deal worth $500 million. The other deal is with Dragonfly Capital and will also raise $500 million, focusing on a special purpose acquisition vehicle.

Two Deals Set to Drive $1B Raise for AVAX Treasury

Sources familiar with the situation confirmed that Avalanche is finalizing two deals to fund its AVAX treasury project. The first deal will likely conclude by the end of this month. It involves a private placement led by Hivemind Capital, with Anthony Scaramucci advising on the deal.

The second deal is expected to close in October. It is led by Dragonfly Capital, a key player in the blockchain investment world. Both firms plan to purchase AVAX tokens from the Avalanche Foundation at a discounted price, aiming to fuel the growth of the AVAX treasury.

Avalanche’s $1B Strategy to Boost AVAX Scarcity

Avalanche plans to use the raised funds to accumulate AVAX tokens and establish a treasury. At current prices, $1 billion WOULD buy about 34.7 million AVAX, roughly 8% of the total circulating supply. This strategy aims to increase the value of AVAX over time by securing a substantial amount of tokens.

The limited supply of 720 million AVAX further strengthens this strategy. Avalanche’s approach mirrors that of other major cryptocurrencies, like Bitcoin, which also has a capped supply. By consolidating tokens, Avalanche hopes to boost scarcity and enhance its long-term value.