Avalanche, known for its high-speed transaction platform, is launching a new initiative to secure $1 billion for the establishment of two U.S.-based treasury companies.
Goal to Raise $1 Billion
Avalanche is reportedly in advanced discussions with investors to create two treasury firms, one of which will be newly established, while the other will convert an existing company. Together, they aim to raise $1 billion in the coming weeks, with a significant portion directed towards the purchase of AVAX tokens at discounted rates.
Institutional Support
The timing of this initiative comes amid mixed market performance from publicly traded crypto treasury firms. Nonetheless, Avalanche is focusing on increasing institutional interest, similar to earlier Bitcoin treasury models which resulted in significant corporate investments. Hivemind Capital and Dragonfly Capital are already involved in the deals, securing private investment to meet the targeted funding.
AVAX Token Acquisition Strategy
Both treasury companies are expected to directly purchase AVAX tokens from the Avalanche Foundation’s holdings, which currently amount to 420 million tokens. These activities may significantly boost investor interest and demand for the AVAX token, whose price has already surged by over 8% following the announcement of these plans.
Avalanche's initiative to create treasury firms represents a strategic move towards attracting institutional investors and strengthening its position in the cryptocurrency market.
