Avalanche Foundation plans to secure $1 billion to acquire AVAX token reserves. The initiative is being conducted through two investment vehicles in the United States.
Strategy for Increasing Reserves
According to a report from the Financial Times, the Avalanche Foundation is looking to purchase millions of AVAX tokens at discounted rates through two separate investment companies in the U.S. One company will act as a digital asset treasury, while the other will focus on crypto investments.
Discussions with investors are ongoing, with preliminary agreements expected in the coming weeks. Reports suggest that AVAX tokens will be available from the Avalanche Foundation at a discounted price, with the first deal anticipated to conclude by the end of this month.
Impact on AVAX
Following the announcement of these plans, the price of AVAX surged over 6% in the past 24 hours, reaching $28.85. The token has been steadily increasing, with a 16.86% rise over the past week and a 25% increase over the last month. The price increase is also linked to heightened activity on the Avalanche blockchain, which processed 11.9 million transactions last week.
Market and Forecasts
Market analysts emphasize that AVAX is forming a bullish continuation pattern, indicating potential upward movement. Current chart structures suggest an upside target around $37.7, representing nearly 30% potential gains. However, a drop below $26.5 could threaten the ongoing breakout trend.
Experts agree that the new strategy of the Avalanche Foundation is likely to strengthen the company's position in the digital asset market and boost investor confidence.
