The Avalanche (CRYPTO: AVAX) Foundation, a non-profit organization dedicated to advancing the namesake blockchain, plans to establish two cryptocurrency treasury companies in the U.S., according to a report published Wednesday.
An AVAX Treasury Worth A Billion?
The Foundation is in the final stages of discussions with investors to launch a digital asset treasury company and transform another into a similar entity, reported the Financial Times, citing people familiar with the matter. The objective is to raise approximately $1 billion in total and finalize the deals in the upcoming weeks.
The funds generated will be utilized to buy millions of AVAX, the $12-billion cryptocurrency tied to the Layer-1 Avalanche network. The Avalanche Foundation will offer AVAX at a discounted rate, the report said.
The first deal, aiming to raise up to $500 million, is spearheaded by blockchain-focused investment firm Hivemind Capital through a private investment in an existing Nasdaq-listed company. The company told FT that it’s working on a deal but declined to give further details.
Anthony Scaramucci, a known AVAX investor and former White House press secretary, is reportedly advising on the deal.
The second deal, backed by cryptocurrency venture fund Dragonfly Capital, will be through a special purpose acquisition vehicle. It also aims to raise up to $500 million but may not conclude until October.
Dragonfly Capital, Hivemind Capital and Scaramucci’s team didn’t immediately return Benzinga’s request for comment.
One Of Anthony Scaramucci’s Hot Picks
Avalanche, which launched in 2020, seeks to provide scalable and secure infrastructure for decentralized applications and smart contracts. It was branded a “Ethereum Killer” in its early days, although Ethereum has grown to be far larger in market value and in decentralized finance.
Scaramucci has been a prominent backer of the network, and said in an X post last month that Avalanche’s “moment is coming.” He previously revealed that AVAX is part of his cryptocurrency portfolio and among the “high-quality, great core assets" in the long term.
Price Action: At the time of writing, AVAX was trading up 6.65% to $28.77, visiting levels last seen more than seven months ago, according to data from Benzinga Pro.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
