Avalanche Foundation to Raise $1B to Fund Two Crypto Treasury Companies

TL;DR

• The Avalanche Foundation seeks to raise $1 billion to create two crypto treasury companies.

• The companies will hold millions of AVAX tokens to be purchased by the Foundation at a discount price.

The Avalanche Foundation Seeks to Raise $1B

The Avalanche Foundation intends to raise $1 billion to create two treasury companies holding millions of AVAX tokens. This is according to a Financial Times report on Thursday, citing sources familiar with the matter. 

The report revealed that the Avalanche Foundation will purchase the AVAX tokens at a discounted price. The foundation was in talks to raise $500 million via a private funding round led by Hivemind Capital in an unidentified Nasdaq-listed company. FT added that the foundation aims to complete the deal by the end of September, with former White House press secretary Anthony Scaramucci advising on the deal.

FT added that the second deal would create an AVAX treasury company via a special purpose acquisition company (SPAC).

This latest development comes as an increasing number of companies are launching crypto treasuries. Michael Saylor’s Strategy remains the leader in this group as it now holds nearly 640,000 BTC ($73 billion).