Avalanche Pursues $1 Billion for U.S. Treasury-Focused AVAX Firms

Avalanche plans two U.S. treasury vehicles to raise $1B led by Hivemind and Dragonfly.

AVAX traded at $28.90 with $12.2B market cap and $1.33B 24-hour volume.

Institutions like BlackRock and Apollo tested tokenized funds on Avalanche’s network.

The Avalanche Foundation is seeking to raise $1 billion to establish cryptocurrency-focused treasury companies in the United States. According to a report by Financial Times, the initiative involves two separate vehicles aimed at building digital asset treasuries and purchasing millions of AVAX tokens directly from the Foundation’s holdings. The move comes as institutional demand for blockchain-based treasuries grows and network activity on Avalanche strengthens.

Structure of the Planned Treasury Deals

According to reports, Avalanche is working with major investors to finalize two separate treasury-focused projects. One involves creating a new digital asset treasury company, while the other would convert an existing firm into a treasury vehicle. Combined, the two deals are expected to generate about $1 billion in funding in the coming weeks.

Hivemind Capital is leading the first deal and has secured a private investment of up to $500 million in an existing Nasdaq-listed company. Dragonfly Capital is sponsoring the second, which aims to raise another $500 million through a special purpose acquisition vehicle. That transaction may close in October.

Funds from both deals are expected to purchase AVAX tokens from the Foundation at a discount. The Foundation holds part of the circulating supply of about 420 million AVAX, out of a maximum cap of 720 million tokens.

Market Impact and Institutional Context

The announcement coincided with a price increase for AVAX. The surge was supported by higher trading volumes and nearly 12 million transactions recorded on the network in one week. Activity on Avalanche’s C-Chain, along with increased participation in DeFi and memecoin trading, contributed to the growth. Tracking the ongoing price trend at the time of press, CoinMarketCap data reveals that AVAX traded at $28.90, down 0.6% over the past day. Market capitalization stood at $12.2 billion, with a 24-hour trading volume of $1.33 billion, reflecting a 12.43% decline

Source: CoinMarketCap

The volume-to-market cap ratio was 11.06%. Price movements during the day ranged between $28.50 and $29.50 The chart showed periods of upward momentum overnight, followed by intraday corrections, before stabilizing closer to $29. The price activity reflected alternating gains and losses across the trading sessions. Institutional engagement with Avalanche has also expanded.Firms such as BlackRock, Apollo, and Wellington Asset Management have tested tokenized investment funds using the network. These trials add weight to Avalanche’s strategy of positioning itself as a hub for on-chain finance and treasury operations. At the same time, not all institutional developments have advanced quickly. VanEck’s Avalanche ETF application faced a postponement, adding uncertainty to broader adoption in U.S. markets. Despite this, the treasury fundraising plan underscores a long-term strategy centered on AVAX demand.