The Avalanche Foundation is exploring a plan to raise up to $1 billion to seed two treasury companies that would hold millions of AVAX tokens, the Financial Times reported. Under the proposals, the foundation would sell AVAX to the new funds at a discounted price.
One proposal would raise up to $500 million through a private investment in an unidentified Nasdaq-listed company led by Hivemind Capital, with the aim of closing by the end of the month. Former White House press secretary Anthony Scaramucci is reportedly advising on that deal.
A second proposal would create an AVAX-focused treasury vehicle via a special purpose acquisition company (SPAC), according to people familiar with the talks.
The moves come as a growing number of publicly listed firms have pivoted to cryptocurrency-treasury strategies this year, following the model popularised by Michael Saylor’s MicroStrategy, which now holds nearly 640,000 BTC. But a cooling crypto market in August hit many of those companies’ shares, which could weigh on investor appetite for similar plays.
On markets, AVAX rallied about 8% in the last 24 hours before slipping roughly 2.1% since midnight UTC; the broader CoinDesk 20 Index was 0.65% higher. The Avalanche Foundation did not respond to requests for comment.
Why this matters: creating concentrated AVAX treasuries could influence supply dynamics and investor perception of Avalanche. Selling tokens at a discount to affiliated funds also raises governance and market-concentration questions. Investors should note the usual risks — token price volatility, rapid shifts in market sentiment and potential regulatory scrutiny — when assessing such strategies.
Source: Financial Times. Read the original coverage for full details.