Avalanche Foundation’s $1 billion raise is a treasury-accumulation plan to buy AVAX from the foundation at discounts, creating a digital-asset treasury and a crypto-hoarding vehicle to support long-term AVAX reserves and protocol-backed activities.
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$1 billion target to fund a digital-asset treasury and accumulation vehicle
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Two separate deals reportedly involve Hivemind Capital and Dragonfly Capital participating in private placements and SPAC-related financing.
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At current prices, $1 billion equals roughly 34.7 million AVAX — about 8% of circulating supply (422.3M); total AVAX supply capped at 720M.
Avalanche Foundation $1 billion raise announced to build a digital-asset treasury and buy AVAX; read details on structure, investors, and supply impact.
What is the Avalanche Foundation $1 billion raise?
Avalanche Foundation $1 billion raise refers to reported plans by the nonprofit to secure up to $1 billion through two deals to fund a digital-asset treasury company and convert another entity into an accumulation vehicle. The proceeds would be used to purchase AVAX from the foundation, reportedly at a discount.
How will the Avalanche Foundation raise $1 billion?
Reportedly, the plan involves two primary transactions: a $500 million private placement led by Hivemind Capital in an existing Nasdaq-listed company and a separate special-purpose acquisition vehicle (SPAC) involving Dragonfly Capital to raise up to $500 million. Anthony Scaramucci is named as adviser to the first deal, per reporting.
Why is the foundation buying AVAX from itself?
The stated goal is to create a treasury and accumulation mechanism that secures long-term AVAX reserves for protocol support and strategic initiatives. Buying AVAX at a discount into foundation-controlled vehicles increases on-chain reserves that can be deployed for ecosystem grants, staking, or strategic market support.
Are investor names and sources confirmed?
Sources named in reporting include Hivemind Capital, Dragonfly Capital, Ava Labs and advisers such as Anthony Scaramucci. These names were reported by Financial Times and mentioned in media coverage; CoinGecko and Cointelegraph provide price and market-cap context. The organizations named have not been linked here — they are referenced as plain text sources.
How much AVAX would $1 billion buy and how does supply compare?
At the reported conversion, $1 billion would buy approximately 34.7 million AVAX at current market prices, equivalent to roughly 8% of the 422.3 million AVAX estimated in circulation. Avalanche’s maximum supply is capped at 720 million AVAX.
| Metric | Value |
|---|---|
| Circulating supply (approx.) | 422.3 million AVAX |
| Maximum supply | 720 million AVAX |
| AVAX acquired with $1B (approx.) | 34.7 million AVAX (~8% of circulating) |
Avalanche (AVAX) data and all-time price chart. Source: CoinGecko
When did AVAX last peak and what is current market movement?
AVAX hit all-time highs above $134 after launch and peaked near $135 in November 2021, according to CoinGecko data. At the time of this report, AVAX traded around $28.8 and showed a 16% increase over the prior seven days, indicating renewed market interest.
What are possible market and governance implications?
Concentrated purchases by foundation-controlled vehicles can tighten circulating supply and provide protocol-directed liquidity. Governance and transparency measures will be important to maintain trust; stakeholders will likely watch disclosure from Ava Labs and the Avalanche Foundation, as well as filings mentioned in reporting.
Frequently Asked Questions
How will the $1 billion be structured between the two deals?
Reporting indicates a two-part structure: a $500 million private placement led by Hivemind Capital in a Nasdaq-listed vehicle, plus a separate SPAC-style transaction involving Dragonfly Capital to raise up to another $500 million. Timelines differ for each deal.
Does this change AVAX’s maximum supply?
No. The maximum supply of AVAX remains capped at 720 million tokens. The reported raise would reallocate existing tokens from the foundation into treasury-style vehicles rather than mint new supply.
Key Takeaways
- Planned $1B raise: Two deals aim to fund a digital-asset treasury and an accumulation vehicle.
- Tokens involved: About 34.7M AVAX could be acquired, ~8% of circulating supply.
- Market impact: Could tighten circulating supply and centralize reserves under foundation-controlled entities; transparency will be crucial.
Conclusion
The reported Avalanche Foundation $1 billion raise is a strategic treasury initiative to accumulate AVAX and build long-term protocol reserves. Key players named in reporting include Hivemind Capital, Dragonfly Capital and advisors such as Anthony Scaramucci, with market context from CoinGecko and media coverage by Financial Times and Cointelegraph. Watch for official disclosures from Ava Labs and the Avalanche Foundation for precise terms and timelines.
