Avalanche isn’t just pushing technical boundaries it’s aiming to redefine how financial capital flows into crypto. According to multiple confirmed reports, the Avalanche Foundation is currently in advanced talks to raise up to $1 billion through two new U.S. based treasury vehicles. The plan is to use these entities to purchase millions of AVAX tokens directly from the foundation’s reserves at a discounted rate, helping Avalanche build a strategic on chain treasury that serves as a financial base for institutional adoption and multi-chain finance integration.
The first of the two treasury vehicles is a private investment route reportedly led by Hivemind Capital. It involves transforming an existing Nasdaq-listed company into an Avalanche aligned digital asset treasury firm. Helping guide this effort is Anthony Scaramucci, the founder of SkyBridge Capital, who is acting as an advisor. This deal is targeting a raise of up to $500 million and was initially expected to close sometime around the end of September. However, that timeline appears to be a goal rather than a certainty, as the details of the agreement are still being finalized.
The second part of Avalanche’s treasury strategy comes in the form of a SPAC, or Special Purpose Acquisition Company, spearheaded by Dragonfly Capital. That deal is also set to raise $500 million and will result in the creation of a publicly traded Avalanche Treasury Company. The SPAC involved, Mountain Lake Acquisition Corp., is merging with Avalanche Treasury Co. in a $675 million deal. Once finalized, the new company is expected to list on Nasdaq in 2026 and will begin its mission by purchasing $200 million worth of AVAX from the Avalanche Foundation at a discount. It’s anticipated the treasury will hold approximately $460 million in initial assets, with the long-term goal of accumulating $1 billion in AVAX tokens.
These aren’t random acquisitions through crypto exchanges. Both treasury vehicles will acquire AVAX directly from the foundation, which helps avoid triggering volatility in public markets. The discounted purchases are designed to bring in institutional investors with a long term mindset while preventing the kinds of quick market dumps that often plague token unlocks. While the exact discount rate and token vesting conditions haven’t been publicly disclosed, these elements will play a crucial role in determining how much pressure the strategy puts on AVAX’s price over time.
Avalanche’s ultimate vision here is ambitious. Rather than just being a fast, low cost alternative to Ethereum, Avalanche wants AVAX to become a legitimate reserve asset something institutional investors can put on their balance sheets and use in tokenized finance. In a world rapidly moving toward cross chain infrastructure and real world asset tokenization, this $1 billion treasury push is Avalanche’s attempt to solidify its role at the center of the new financial web.
That ambition, of course, doesn’t come without risk. If either of the deals fall through or are delayed significantly, the market momentum Avalanche has built could begin to unravel. If the discounted AVAX tokens are eventually dumped onto open markets, prices could be hit hard. And all of this is unfolding under the ever-present shadow of regulatory scrutiny, especially in the United States, where rules around crypto securities, treasuries, and token sales remain vague and constantly shifting.
Still, the market has shown confidence so far. AVAX surged by as much as 10 percent following the announcement of the treasury initiative, briefly climbing above the $29 mark. That price action suggests investors are taking the move seriously, especially given the involvement of major backers like Dragonfly, Hivemind, and Scaramucci. The SPAC-backed Avalanche Treasury Co. also counts support from Galaxy Digital, Pantera Capital, VanEck, and even Kraken, highlighting just how many institutional players believe in the plan.
While many Layer 1 blockchains have tried to establish themselves through ecosystems, partnerships, or speed, Avalanche is taking a distinctly financial route.It’s trying to blend blockchain technology with capital market practices in a way that few others have attempted. Instead of relying solely on grants or developer incentives, Avalanche is building a financial base one that could provide liquidity support, market stability, and growth capital well into the future.
The approach puts Avalanche in a unique category. Ethereum might have the most active developer base. Solana may be known for its speed and NFT success. But Avalanche is carving out its reputation as the chain for capital markets the place where institutions go when they want structured access to blockchain-native assets. If successful, this treasury strategy could serve as a blueprint for other ecosystems looking to mature beyond speculative hype and into strategic financial infrastructure.
What makes Avalanche’s plan even more notable is how it bridges both crypto native and traditional financial worlds. By setting up a Nasdaq-listed treasury vehicle, it is giving Wall Street a clean entry point into crypto. It also signals to regulators and policymakers that this isn’t just another Wild West token play. It’s a structured, strategic attempt to treat AVAX as a serious financial instrument, one capable of being integrated into hedge funds, ETFs, and institutional portfolios.
Of course, none of this is a done deal yet. Execution remains everything. The foundation and its partners must successfully finalize both deals, clearly communicate lockups and discount structures, and ensure that token flows are transparent and responsibly managed. If they can maintain discipline and avoid overreach, Avalanche could very well establish the first billion dollar on chain treasury model designed from the ground up to support an entire ecosystem.
It’s rare in crypto to see a project take such a methodical, finance first approach without resorting to marketing theatrics. But that might be Avalanche’s biggest strength right now. It isn’t trying to go viral. It’s trying to go institutional. And that shift in tone might be exactly what AVAX needs to move from a speculative asset to a foundational one.
This treasury initiative is still unfolding, and the market will be watching closely. If Avalanche pulls it off, the blockchain’s role in multi-chain finance could be transformed. AVAX might go from being a fast token for smart contracts to a trusted store of value for the future of programmable money. And that would be a story worth remembering.
