The Avalanche Foundation, the non-profit organization behind the Avalanche blockchain, is reportedly in advanced talks to raise $1 billion to establish two cryptocurrency treasury companies in the United States, according to the Financial Times.
Citing sources familiar with the matter, the report said the plan involves creating one new treasury company and converting an existing firm into a treasury vehicle. The foundation is expected to finalize the deals in the coming weeks.
One of the transactions targets up to $500 million in private investment in a Nasdaq-listed company. The deal is led by Hivemind Capital with advisory support from SkyBridge Capital founder Anthony Scaramucci and could close by the end of September.
The second deal involves a special purpose acquisition vehicle (SPAC) backed by Dragonfly Capital, also aiming to raise $500 million, with an expected completion date in October.
Proceeds from both transactions are expected to be used to purchase millions of Avalanche’s native token, AVAX, which the foundation will reportedly sell at a discounted rate.
Growing Trend of Digital Asset Treasuries
The move comes amid a growing trend of digital asset treasuries (DATs), where investors acquire publicly traded companies and transform them into vehicles for holding crypto assets—a process often described as a “reverse merger.”
Earlier this week, Nasdaq-listed Asset Entities (ASST) shareholders approved a planned merger with Vivek Ramaswamy’s Strive Enterprises, which will see the firm pivot into a bitcoin-focused treasury company.
Avalanche’s Role in Institutional Tokenization
Avalanche continues to expand its institutional footprint. Major investment firms, including BlackRock, Apollo, and Wellington Asset Management, are currently testing fund tokenization on the blockchain. The renewed momentum has helped boost AVAX, which rose more than 10% in the past 24 hours to trade at $29.11, according to data.
If completed, Avalanche’s treasury initiatives could mark a significant step in bridging traditional finance with blockchain-based assets. By leveraging large-scale investments and tokenization projects, the foundation is positioning AVAX at the center of a rapidly evolving digital asset landscape.
