Avalanche Foundation eyes $1 billion to set up AVAX treasury firms in US: FT
Avalanche Foundation, the non-profit group behind the Layer 1 blockchain, is in "advanced discussions" to establish two cryptocurrency treasury companies in the U.S., according to the Financial Times.The FT report, citing two sources familiar with the matter, stated that the foundation's deal with investors involves launching one crypto treasury company and converting an existing company into a treasury vehicle. Avalanche Foundation reportedly aims to raise $1 billion and is expected to close the deals in coming weeks. One of the deals targets a raise of up to $500 million in a private investment in a Nasdaq-traded company. The investment is led by Hivemind Capital and advised by SkyBridge Capital Founder Anthony Scaramucci, and expected to close by the end of September, FT's report said. The other deal involves a special purpose acquisition vehicle sponsored by Dragonfly Capital, which also aims to raise $500 million, with an expected completion date in October.With the proceeds, the two companies are expected to purchase millions of Avalanche's AVAX cryptocurrency, which the foundation will offer at a discounted price, according to the report.The Block has reached out to the Avalanche foundation for further comment.Amid the ongoing trend of corporate digital asset treasuries (DATs), a number of larger companies have recently started to buy out publicly-traded companies to turn them into crypto treasury companies in a "reverse merger."Earlier this week, Nasdaq-listed Asset Entities (ASST) saw its shareholders approve its planned merger with Vivek Ramaswamy's Strive Enterprises, which would result in the former transforming into a bitcoin-focused DAT.Meanwhile, Avalanche is currently being utilized by investment firms like BlackRock, Apollo, and Wellington Asset Management to test the tokenization of funds. AVAX rose 10.17% in the past 24 hours to trade at $29.11, according to The Block's price page.Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures.© 2025 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.