The Avalanche Foundation is reportedly planning to raise a staggering $1 billion to establish two new crypto treasury companies, according to a report from the Financial Times. The initiative aims to create regulated investment vehicles that will hold millions of AVAX tokens, which would be purchased from the foundation at a discounted price.
This ambitious fundraising effort comes as a growing number of publicly-listed companies are adopting a “crypto treasury” strategy, holding digital assets like Bitcoin on their balance sheets. However, the report notes that enthusiasm for this model may have cooled slightly following a recent downturn in the crypto market.
Details of the fundraising efforts include:
- A private investment of up to $500 million, led by Hivemind Capital, into an unidentified Nasdaq-listed company. Former White House Press Secretary Anthony Scaramucci is advising on the deal, which is expected to be completed by the end of the month.
- A second deal to create an AVAX treasury company via a Special Purpose Acquisition Company (SPAC).
The news appears to be positively impacting AVAX, which advanced nearly 8% in the past 24 hours. The foundation has not yet responded to requests for comment.
