The Avalanche Foundation has announced plans to create two AVAX treasury companies in the United States, aiming to raise $1 billion from investors.
Avalanche Foundation Initiative
The Avalanche Foundation is set to establish two AVAX treasury firms in the United States, raising $1 billion with the backing of Hivemind Capital and Dragonfly Capital. Hivemind Capital is conducting a private placement of $500 million, while Dragonfly Capital leads another $500 million through a SPAC.
Impact on AVAX Price
Following the announcement, the price of AVAX surged by 8%, peaking at $29. This marks the highest price for the token since February, with its market capitalization reaching approximately $12.2 billion, ranking AVAX 21st among digital assets.
Institutional Interests and Challenges
Investments from companies like BlackRock and Visa highlight the growing interest of institutional players in the Avalanche platform. However, there has been no information regarding regulatory actions. The initiative resembles similar strategies employed by other crypto organizations but stands out for its scale.
Thus, the Avalanche Foundation's initiative may lead to significant implications for both the AVAX market and institutional investments in the cryptocurrency industry as a whole.
