- The Avalanche Foundation aims to raise almost $1 billion through the US-based crypto treasury to increase demand for its coin AVAX
- This deal is to increase the institutional demand for the coin
The Avalanche Foundation is in serious discussions to raise almost $1 billion to generate two U.S.-based cryptocurrency‑treasury (or “stacking”) vehicles. Its goal is to reinforce its place in the capital markets and support demand for its own coin, AVAX. The foundation is in discussion with the investors regarding these digital asset treasury and accumulation projects.
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Avalanche seeks capital via treasury deals
These crypto‑treasury vehicles are planned to act like institutional investment vehicles, obtaining large amounts of AVAX. Which was bought directly from the Avalanche Foundation at deducted rates and clasping these tokens in reserve. The plan has 2 different deals, both targeting almost $500 million.
One deal is planned to be led by Hivemind Capital as a private investment. The other deal is suggested to take the form of a SPAC (Special Purpose Acquisition Company) endorsed by Dragonfly Capital. The foundation is hoping to close both these deals in the coming weeks.
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Push to rival top blockchains
The foundation’s suggested move emerges between a larger trend of blockchain projects looking to imitate what competitors like Ethereum (ETH) and Solana (SOL) have attained. That is the considerable token price admiration through strong treasury schemes. Reportedly, AVAX has lagged in performance compared to some peers, and this new attempt is a correction for that performance issue.
AVAX, at the time of writing, is trading at $28.95 (1.46%). The coin has a market cap of $12.21 billion and a volume of $1.47 billion. Avalanche’s thought to raise $1B for stacking/treasury vehicles is bold because all this is done to increase the bid on the coin and to attract institutional demand. This can also make AVAX enter into cut cut-throat environment of layer 1 blockchain.
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