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- Avalanche Foundation eyes $1B reserves push through dual vehicles with discounted AVAX sales.
- Avax price surged past $28 after news, chart signals further bullish momentum toward $37.
The Avalanche Foundation is preparing to raise $1 billion for its token reserves, according to a report from the Financial Times. The funds would be used to buy millions of AVAX tokens at discounted rates through two separate investment vehicles in the United States.
Insiders revealed that one company will serve as a designated digital asset treasury company, while the other will operate as a crypto-focused entity. These steps are part of an effort to boost Avalanche’s long-term token holdings and strengthen its position in the digital asset sector.
Talks with investors are ongoing, with final agreements expected in the coming weeks. “Avax would be available from Avalanche Foundation at a discounted price,” sources familiar with the discussions said. The goal is to finalize the first deal by the end of this month.
According to FT, Avalanche Foundation is in talks with investors to set up two US “digital asset treasury” companies, aiming to raise $1B to buy millions of AVAX at a discount. The first, led by Hivemind Capital, seeks up to $500M via a Nasdaq-listed firm with crypto investor and…
— Wu Blockchain (@WuBlockchain) September 11, 2025
Hivemind and Dragonfly Fuel $1B Strategy
The first fundraising plan, managed by Hivemind Capital, seeks to secure $500 million through a private placement involving a Nasdaq-listed company. Former White House Press Secretary and well-known crypto investor Anthony Scaramucci has been appointed as an advisor.
Meanwhile, Dragonfly Capital is behind the second $500 million fundraising effort, which will take place through a special purpose acquisition company (SPAC). Insiders explained that this structure allows for faster capital deployment and potential mergers, but the closing of this deal will take longer. The expected completion date is October 2025.
These twin efforts together represent Avalanche’s strategy to create a treasury system worth up to $1 billion. The foundation intends to hold the purchased tokens to strengthen liquidity and investor confidence over time.
AVAX Price Reaction
Following the announcement, AVAX rose over 6% in the past 24 hours, reaching $28.85 on Thursday. The token has been gaining steadily for weeks, with a 16.86% increase in the past seven days and a 25% climb over the past month.
Avalanche blockchain activity has also seen a rise, processing 11.9 million transactions last week alone. DeFi platforms and memecoin activity are driving much of this growth, highlighting rising network usage alongside institutional involvement.
Major investment firms such as BlackRock, Apollo, and Wellington Asset Management have recently tested tokenized versions of their funds on Avalanche. Grayscale has also filed for the conversion of its Avalanche Trust into a spot AVAX ETF on Nasdaq, as reported by CNF.
Market analysts highlight a bullish continuation pattern in AVAX’s price chart. The token formed a cup-and-handle structure, breaking above resistance near $26.5 on September 10 with strong trading volume.
Based on this setup, an upside target around $37.7, representing nearly 30% potential gains from current levels. If this momentum holds, AVAX could push toward the $40 mark in the coming weeks. A reversal below $26.5, however, would threaten the current breakout structure and signal a possible pullback.
