Avalanche to Raise $1 Billion to Create Crypto Stacking Vehicles: Report

Nonprofit organization the Avalanche Foundation, which supports the development of the Avalanche blockchain, is planning to raise as much as $1 billion through a sale of AVAX tokens that will be used to back new treasury-focused efforts and crypto accumulation initiatives. The scheme would include selling millions of AVAX tokens, Avalanche’s native cryptocurrency, at a reduced price to specific investors, the Financial Times said.

 

If successful, the fundraising would be one of the most important moves by a layer-1 blockchain project in years to secure the long-term sustainability of its ecosystem and reinforce its position within the burgeoning digital asset treasury space.

Constructing a Treasury Filled with Prosperity

The Avalanche Foundation is currently seeing interest from large investors as it becomes the launchpad for a new digital asset treasury company and repurposes another existing company into what sources called a “crypto-hoarding vehicle.” These vehicles would be designed to hold and manage Avalanche’s native token, AVAX, with the ultimate goal of driving liquidity, adoption, and financial stability for the nascent ecosystem.

 

As of writing, AVAX is valued at $29.44 with a market cap of $12.2 billion, making it the 21st-biggest cryptocurrency by market value, according to CoinGecko. Through increased funding and thoughtful decentralization of AVAX, Avalanche is demonstrating its long-term dedication to supporting the economics of the network.

The $1 Billion Fundraising Structure

The $1 billion raise is said to be structured in two major deals:

 

• $500 Million Private Placement – According to the announcement, Hivemind will be headlining the private placement with $250M in new capital to bring aboard into Terra Network. This deal involves a Nasdaq-traded company and would give Avalanche an established avenue into Wall Street.
• The Plan: Transformation into a Crypto Stash Machine – The second part includes repurposing another company to purchase, hold, and possibly stake AVAX, further supporting the Avalanche Network.

 

The first agreement is said to be nearly ready for signing, and sources say it could be completed before the end of October.

Key Players and Strategic Backing

One high-profile name linked to the push is Anthony Scaramucci, a well-known crypto investor and founder of SkyBridge Capital who was once the White House communications director. Scaramucci is seen as steering the fundraising operation, adding financial expertise and credibility to Avalanche’s project.

 

Major VC funds such as Dragonfly are also reaching out with interest in having conversations, a significant institutional stamp of approval on Avalanche’s next phase of growth.

Why This Could Matter for Avalanche and Crypto Markets

Avalanche 1.0 was originally marketed as a cheap, fast blockchain network that could compete with Ethereum in dApps, DeFi protocols, and NFT projects. By raising $1 billion to support treasury and accumulation vehicles, Avalanche is essentially:

• Growing Network Value: A universal buyback-and-hold program reduces circulating supply, potentially driving up AVAX’s price.
• Institutional Support: Partnerships with firms like Hivemind and Dragonfly highlight growing mainstream confidence in Avalanche.
• Increasing Ecosystem Resilience: Treasury-focused companies can help support developers, liquidity providers, and strategic initiatives during down markets.

 

It also reflects a broader trend in crypto where foundations and blockchain companies are adding treasury management into their playbooks as a way to build stability in volatile markets.

Looking Ahead

The fundraising is not complete, but the Avalanche Foundation’s $1 billion target shows it aims to play in the big leagues of blockchain infrastructure. With strategic partners, institutional investors, and high-profile advisors already onboarded, the effort could potentially transform Avalanche’s trajectory in the fast-expanding digital asset landscape.

 

If executed properly, Avalanche’s treasury expansion will enhance the AVAX story, not just as an experiment in blockchain viability, but as a model for other networks aspiring toward stability and financial resilience.

 

This article is contributed by an external writer: Stella Collins.

 
Disclaimer: The content created by LBank Creators represents their personal perspectives. LBank does not endorse any content on this page. Readers should do their own research before taking any actions related to the company and carry full responsibility for their decisions, nor can this article be considered as investment advice.