The nonprofit supporting the Avalanche blockchain is looking for new funding sources
The Avalanche Foundation, the nonprofit supporting the Avalanche blockchain, is working on an ambitious fundraising plan that could bring in up to $1 billion for new crypto-related projects. According to reports, the foundation is holding discussions with investors about setting up a digital asset treasury and transforming another entity into what has been described as a “crypto-hoarding” company.
The fundraising push is structured around two separate deals. The first is a $500 million private placement led by New York-based Hivemind Capital. That investment would be made in an already listed Nasdaq company, with crypto investor Anthony Scaramucci advising on the effort. This deal was expected to close by the end of the month.
The second half of the initiative involves a special purpose acquisition vehicle (SPAC) connected to Dragonfly Capital, another major player in blockchain investment. Sources noted that while the Dragonfly-led deal is also aimed at raising up to $500 million, it may take until October before it is finalized.
Funds raised through both deals would be used to purchase Avalanche’s native token, AVAX, directly from the foundation at discounted prices. Based on current market levels, $1 billion would amount to nearly 35 million AVAX, representing around 8% of the tokens now circulating. Avalanche, like Bitcoin, has a capped supply—set at 720 million tokens in total.
Avalanche currently ranks as the 21st largest cryptocurrency, with a market value of about $12.2 billion. Launched in 2020 by Ava Labs, the network has grown as a platform for decentralized applications and smart contracts. AVAX has seen volatile trading, hitting highs of around $135 in 2021 before sliding to below $65 in 2022. At the time of the latest reports, the token was trading near $28.8, having gained about 16% over the previous week.
The fundraising move comes as Avalanche continues to attract institutional attention. In August, Grayscale Investments filed with the US Securities and Exchange Commission to launch an Avalanche-based exchange-traded fund, further signaling momentum behind the blockchain’s ecosystem.
