- Avalanche’s $1B treasury plan led by Hivemind and Dragonfly targets discounted AVAX.
- Dragonfly uses a SPAC structure to raise $500 million for AVAX market acquisitions.
- Institutional strategies align Avalanche with Wall Street balance sheet practices.
Avalanche Foundation is discussing establishing two U.S. based treasury firms to raise $1 billion for discounted AVAX token purchases. According to FT, the fundraising involves Hivemind Capital Partners and Dragonfly Capital. The foundation intends to use the funds to acquire millions of AVAX tokens from its reserves.
Hivemind to Lead Treasury Initiative
Web3-focused investment firm Hivemind Capital Partners will manage the first vehicle. The group is in advanced talks with investors to transform a Nasdaq-listed company into a digital asset treasury firm.
This entity is expected to raise up to $500 million to purchase AVAX tokens directly from the Avalanche Foundation at discounted rates. Anthony Scaramucci, former White House Press Secretary and crypto investor, will serve as advisor to the project.
Scaramucci has previously participated in large-scale digital asset efforts, including a $100 million Toncoin initiative with AlphaTON Capital Corp. His involvement is intended to strengthen links between traditional financial markets and institutional digital asset strategies.
The partnership shows an effort to bring Wall Street credibility into the Avalanche market. The approach resembles corporate balance sheet management strategies, similar to earlier Bitcoin allocations by publicly listed companies.
Dragonfly Launches SPAC for Second Firm
Alongside Hivemind, Dragonfly Capital will lead the second vehicle. The global investment firm, which has previously participated in Avalanche’s $250 million Avalanche9000 token sale, will structure its plan through a Special Purpose Acquisition Company (SPAC). The SPAC is also targeting $500 million in fundraising to purchase AVAX tokens from the foundation.
Dragonfly’s choice of a SPAC structure suggests a faster path to deploy capital. The arrangement could enable strategic acquisitions or mergers while supporting Avalanche’s market growth.
Both treasury companies will operate under U.S. oversight, which introduces regulatory considerations. The SEC requires digital assets recorded on corporate balance sheets to meet reporting standards. This requirement may influence the design and operations of the treasury firms.
Related: Ryan Gentry Launches $200M BIXIU SPAC to Target Blockchain Infrastructure
Strategy Builds on Past Avalanche Initiatives
The $1 billion treasury plan represents a notable expansion of the foundation’s earlier capital programs. In 2023, Avalanche committed $50 million to tokenized assets through its Avalanche Vista program.
Previous efforts also included a $250 million token sale designed to strengthen ecosystem growth. The new initiatives aim to strengthen those strategies by increasing institutional participation.
Discounted token purchases reduce circulating supply, a tactic comparable to buyback mechanisms. While distinct from Ethereum’s EIP-1559 model, the approach shows broader industry methods to influence token supply management.
Avalanche operates one of the largest blockchain networks, with AVAX used for transaction fees, staking, and governance. By engaging established Wall Street investors, the foundation is aligning its marketplace growth strategy with traditional finance practices. Execution, compliance, and capital deployment will remain key factors in determining the outcome of the plan.
Avalanche Foundation’s $1 billion plan brings Wall Street investment strategies into crypto through two treasury firms in the United States. Backed by Hivemind Capital with Anthony Scaramucci as advisor and Dragonfly Capital through a SPAC, the initiative focuses on discounted AVAX acquisitions. The effort expands on previous Avalanche programs and introduces broader institutional participation in token management.
