Avalanche Foundation plans to raise $1B through AVAX token sales at a discount, with Hivemind and Dragonfly backing major deals.
$1B fundraising plan with discounted AVAX
According to the Financial Times, the nonprofit behind the Avalanche blockchain is in talks with investors to create a digital asset treasury company and transform another entity into a crypto-hoarding vehicle.
The initiative involves selling AVAX tokens directly from the foundation at a reduced price.
Two major deals: Hivemind and Dragonfly
The $1 billion raise reportedly includes two key deals:
- A $500 million private placement led by New York-based Hivemind Capital in a Nasdaq-listed company, with crypto investor Anthony Scaramucci advising.
- A special purpose acquisition vehicle (SPAC) backed by Dragonfly Capital, targeting up to another $500 million. This second deal may not close until October.
Neither Ava Labs, Hivemind, nor Dragonfly have commented publicly on the potential raise.
AVAX supply and market data
If successful, the raise would account for 34.7 million AVAX at current prices, roughly 8% of the circulating 422.3 million tokens. Avalanche’s total supply is capped at 720 million AVAX, similar to Bitcoin’s fixed limit of 21 million BTC.
Currently the world’s 21st-largest cryptocurrency by market capitalization at $12.2 billion, Avalanche has seen strong momentum. AVAX trades near $28.8, up 16% in the past week, though still far below its all-time high of $135 in November 2021.
Industry momentum for Avalanche
Launched in 2020, Avalanche is an open-source blockchain supporting decentralized applications and smart contracts. Its developer, Ava Labs, was founded by Cornell professor Emin Gün Sirer.
In August, Grayscale Investments filed with the U.S. SEC to launch a spot Avalanche ETF, signaling growing institutional interest in the altcoin.
Conclusion
With major backers like Hivemind and Dragonfly, the Avalanche Foundation’s $1 billion raise could significantly impact AVAX’s supply and market dynamics. The outcome of these deals may shape both the token’s price trajectory and Avalanche’s role in the broader crypto ecosystem.
