Avalanche Foundation is gearing up to establish two new cryptocurrency treasury companies in the United States, backed by a substantial funding goal of $1 billion. Sources speaking to the Financial Times have disclosed that the discussions are in advanced stages, with agreements expected to be finalized in the upcoming weeks. Under this initiative, one company will be established from scratch, while an existing company will be transformed into a treasury company.
$1 Billion Fundraising Target
The Avalanche Foundation’s plans involve securing funds through two distinct investment agreements. The first agreement aims to provide up to $500 million through a private investment in a company listed on Nasdaq. Hivemind Capital is spearheading this investment round, partnered by Anthony Scaramucci, founder of SkyBridge Capital, as an adviser. According to insights from the Financial Times, this agreement is anticipated to reach completion by the end of September.
The second agreement is being structured through a special purpose acquisition company sponsored by Dragonfly Capital. This venture also targets a fund size of $500 million, with the process expected to conclude in October. Following these agreements, the obtained funds will be used to purchase millions of AVAX tokens at discounted prices. This approach aims to bolster the balance sheets of the new treasury companies and to support the Avalanche ecosystem.
New Moves in the Cryptocurrency Treasury Trend
Avalanche Foundation’s initiative is seen as part of the rapidly growing global trend of cryptocurrency treasuries. Recently, numerous companies have been observed acquiring or transforming publicly traded companies into treasury firms focused on cryptocurrency. This method is particularly noted for its reverse merger model.
In a recent move, Asset Entities (ASST), a company listed on Nasdaq, approved a merger decision with Vivek Ramaswamy’s Strive Enterprises. Following this merger, the company is projected to transform into a Bitcoin 
$78,815-focused treasury company. Moreover, Avalanche’s network continues to be utilized by major investment firms like BlackRock, Apollo, and Wellington Asset Management for testing the tokenization of funds.
Following these developments, the price of the AVAX coin showed an increase. According to CoinMarketCap data, AVAX rose by 10.17% in the last 24 hours, reaching a value of $29.11.
