The Avalanche Foundation is reportedly in talks with investors to establish two U.S. crypto-treasury vehicles that would raise about $1 billion to acquire AVAX, the native token of the Avalanche network, according to a report by the Financial Times. The transactions could be finalized in the coming weeks and are aimed at U.S. institutional investors. The foundation declined to comment, the report said.
Two separate deals under discussion
One proposed transaction is said to be seeking up to $500 million through a private investment led by Hivemind Capital using an existing Nasdaq-listed company, with Anthony Scaramucci serving as an adviser. Hivemind confirmed it is working on a deal, while Scaramucci did not comment.
A second structure, sponsored by Dragonfly Capital through a special-purpose acquisition vehicle, is also reportedly targeting up to $500 million. That deal could close as early as October. Together, the two vehicles would represent a major attempt to bring AVAX exposure into institutional capital-markets structures in the United States.
Funds would be used to buy discounted AVAX
According to sources cited in the report, the proceeds would be used to purchase millions of AVAX from the foundation at a discounted price. Avalanche has a maximum supply of 720 million AVAX, with roughly 422 million currently in circulation. Following the news, AVAX rose 2.5% on Thursday and was up 17% over the week.
Even with that rebound, AVAX remains about 80% below its 2021 all-time high of $144. At the time referenced in the report, the token was trading around $28.85. The price reaction suggests investors welcomed the possibility of fresh institutional demand, although the token is still far from its previous market peak.
Broader market context
The reported initiative comes at a time when shares of several crypto-treasury companies have weakened, even as tokens linked to bitcoin, ethereum, and solana have gained in recent months. The FT also noted that Avalanche has been used by Wall Street firms including BlackRock, Apollo, and Wellington Asset Management for tokenized fund pilots. Still, AVAX has trailed some rival tokens during the broader crypto rally.
If completed, the two proposed vehicles could expand Avalanche’s role in capital markets and create a more institutional path for AVAX exposure. Until the transactions are formally announced, however, the final structure, timing, and fundraising size remain subject to change.