The Avalanche Foundation is preparing a US$ 1 billion fundraising effort to launch two crypto treasury entities that would acquire large volumes of its native token, AVAX. One deal of US$ 500 million would involve a private placement led by Hivemind Capital, while the second half would come from a special-purpose acquisition company (SPAC) backed by Dragonfly Capital. SkyBridge Capital founder Anthony Scaramucci is advising on the effort.
The plan, if completed, would position Avalanche as one of the most aggressive adopters of treasury strategies in the crypto sector. Tokens are expected to be acquired directly from the Foundation at discounted rates, with the intention of bolstering both liquidity and long-term demand for AVAX. Market reaction has been immediate: the token gained more than 8% after the information became public, lifting its market capitalization to US$ 12.17 billion.
The timing is interesting. Crypto-treasury models have become more popular in 2025, with companies using their balance sheets to stockpile tokens in a bid to emulate the early success of MicroStrategy’s Bitcoin tactic. Japanese firm Metaplanet, which pivoted from hospitality to become a Bitcoin treasury, saw its share price soar before a prolonged correction revealed the risks of tying corporate value to volatile assets.
Other digital assets, including Solana and Worldcoin, have also attracted investments with the same style, but the broader market performance has been uneven. Several listed firms that embraced such strategies have experienced sharp declines in share value in recent weeks, raising questions about sustainability. As per usual, late entrants could struggle to replicate the windfalls seen by early adopters.
Institutional adoption and risks
Despite this cooling sentiment, Avalanche is betting that a structured treasury initiative can enhance credibility with institutional investors and strengthen its ecosystem. By aligning tokenomics with capital markets, the Foundation seeks to differentiate AVAX in an increasingly crowded field of layer-one blockchains. The discounted sales of tokens, while potentially dilutive, are designed to ensure a sizeable base of long-term holders.
Skeptics point out that treasury accumulation has yet to deliver lasting shareholder value in most cases. Volatility, custody risks, and regulatory uncertainty remain central obstacles. Some companies that adopted these models are trading below the implied value of their token holdings, suggesting markets remain unconvinced. For Avalanche, execution, transparency in governance and investor protections will be critical.
If successful, the raise would mark one of the largest token treasury launches to date. It would also underline a shift in how blockchain foundations view their role: less as purely technical stewards, more as capital market products competing for investor attention. For AVAX, the immediate price bounce suggests optimism, but the longer-term test will be whether this financial engineering translates into resilience and safety.
