Avalanche Foundation has announced raising $1 billion to create AVAX treasury firms in the U.S. This step aims to enhance institutional presence and stimulate growth.
Funding Goals
Avalanche Foundation seeks to strengthen AVAX's institutional presence and stimulate growth through the establishment of treasury firms. This step plans to utilize funds for improving liquidity and increasing the Total Value Locked (TVL) in the platform.
Key Participants and Deal Structure
Key players in the deal include Hivemind Capital and Dragonfly Capital. Hivemind Capital is leading a $500 million private investment, while Dragonfly Capital backs a SPAC initiative set to close in October 2025. Anthony Scaramucci from SkyBridge Capital also plays a role in the deal structure and stated: CITE_W_A
Market Impact and Future of AVAX
The establishment of AVAX treasury firms is expected to lead to increased liquidity flows and strengthen positions in the DeFi market. This may enhance AVAX's competitiveness among blockchains like Ethereum and Solana and could affect the project's market valuation. Adhering to U.S. regulatory standards, this initiative will set a precedent for broader institutional participation in the crypto space, fostering new integration opportunities.
The raising of $1 billion will be a significant step for Avalanche Foundation and AVAX, opening new horizons for development within the institutional market of cryptocurrencies.
