Avalanche Foundation Targets $1B to Establish Two Crypto Treasury Firms
The Avalanche Foundation is looking to raise $1 billion to fund two new crypto treasury companies that will manage AVAX tokens.
The Avalanche Foundation aims to raise $1 billion to create two crypto treasury companies holding millions of AVAX tokens, that was reported by the Financial Times on Thursday.
The AVAX tokens would be purchased from the foundation at a discounted price. With a wave of publicly-listed organizations redirecting their focus towards a crypto treasury strategy this year, interest in this tactic seems to have waned somewhat in the last month.
- What to know:
- The Avalanche Foundation is negotiating to raise up to $500 million via a private investment led by Hivemind Capital with a publicly listed company.
- A follow-up agreement will establish an AVAX treasury firm through a special purpose acquisition company (SPAC).
This trend follows Michael Saylor’s strategies with MSTR, now holding nearly 640,000 BTC valued at around $73 billion. However, the recent downturn in the crypto market has dampened spirits.
AVAX experienced a nearly 8% increase in just 24 hours, although it has declined about 2.1% since midnight UTC, while the overall cryptocurrency market as per the CoinDesk 20 Index is up by 0.65%.
The Avalanche Foundation has not responded to CoinDesk’s request for additional details.
