The Avalanche Foundation is trying to raise a whopping $1 billion! This money will go into two new AVAX treasuries, essentially giant piles of AVAX cryptocurrency. This is a big deal, and it’s part of a larger trend in crypto where companies are building up their own crypto reserves to stay strong and stable.
Discounted AVAX for Investors
The plan is to sell millions of AVAX tokens at a discount to investors. They’re talking to big names in finance, and the hope is to finalize the deals really soon. This will help the Avalanche Foundation grow, and it should also make AVAX more popular and easier to trade.
Two Big Funding Rounds
There are two main parts to this fundraising plan:
- Round 1: Aims for $500 million, led by Hivemind Capital, and could be done by the end of the month. Anthony Scaramucci is even advising on this one!
- Round 2: Also aiming for $500 million, this time through a SPAC (a special kind of company that raises money for acquisitions) backed by Dragonfly Capital. This one might take a bit longer, possibly into October.
Both rounds will use the money to buy discounted AVAX tokens directly from the Avalanche Foundation. The Foundation has a total of 720 million AVAX tokens, with about 420 million currently in circulation.
Following the Crypto Treasury Trend
Lots of companies are doing this kind of thing lately. They’re raising billions to buy up crypto, inspired by companies like MicroStrategy and their huge Bitcoin holdings. This has helped push up the prices of other cryptocurrencies like Ethereum (ETH) and Solana (SOL). While AVAX hasn’t seen the same massive price jumps, it’s recently been doing pretty well, and is getting close to $30 per token – a level not seen since February.