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The Avalanche Foundation is set to raise $1 billion with support from Hivemind Capital and Dragonfly Capital to establish two U.S.-based AVAX treasury companies.
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News of the plan has boosted AVAX’s price by over 10% in 24 hours, with traders eyeing the $30 resistance level as momentum builds.
The Avalanche Foundation is preparing a bold new move to strengthen its ecosystem, with plans to raise $1 billion to establish two U.S.-based digital asset treasury companies dedicated to acquiring and holding millions of AVAX tokens.
The initiative, insiders say, could reshape how institutional capital interacts with Avalanche while boosting confidence in the token’s long-term growth.
According to a report from the Financial Times, one treasury vehicle will serve as Avalanche’s designated “digital asset treasury” firm, while another company will be converted into a similar vehicle for crypto holdings.
Both are expected to close deals within the coming months, with the second extending until October 2025.
$500 Million Deals in Motion
The first project is being led by Hivemind Capital, a web3 investment firm. It is expected to raise up to $500 million from Nasdaq-listed companies, with prominent crypto investor and former White House Press Secretary Anthony Scaramucci rumored to be advising the deal. Insiders expect this agreement to close by the end of the month.
The second transaction, backed by Dragonfly Capital, will be executed through a special purpose acquisition vehicle (SPAC). Similar to the Hivemind partnership, it aims to raise another $500 million but will take longer to finalize, with completion slated for October.
Together, these initiatives are designed to position Avalanche as a leading player in digital asset accumulation at a time when traditional crypto treasury firms have faced sharp declines in stock performance.
Strategic Shift in Treasury Models
Unlike many firms such as Metaplanet and Strategy, which primarily focus on Bitcoin and Ethereum, Avalanche’s foundation is concentrating on buying back its native AVAX token at discounted prices. Analysts note this marks a shift in how crypto projects manage long-term reserves, signaling confidence in AVAX’s growth potential and a desire to tighten supply.
This comes as the broader market has witnessed over $16 billion raised in 2025 for crypto asset acquisitions, according to Kaiko data. The trend underscores growing institutional appetite for blockchain-native assets beyond Bitcoin and Ethereum.
AVAX Price Reaction
News of the treasury initiative has already had a direct impact on Avalanche’s market performance. Within hours of the announcement, AVAX surged from the mid-$25 range to just above $29, posting a 10.7% daily gain and a 16.4% increase over the past week.
Technical indicators show momentum remains strong, with support forming between $27.50 and $28. However, the $30 level is emerging as key psychological resistance, where selling pressure has started to appear.
The Relative Strength Index (RSI) briefly crossed into overbought territory above 70 before cooling to around 63, suggesting the market could consolidate before another leg upward.
If the Avalanche Foundation successfully executes its $1 billion treasury strategy, it could mark a turning point for AVAX by reinforcing investor confidence and tightening token supply. With institutional backing from firms like Hivemind and Dragonfly, Avalanche appears poised to expand its footprint in the increasingly competitive crypto treasury space.
