Key Highlights
- Avalanche Foundation targets $1 billion through two investment deals.
- Investors to buy AVAX tokens at discounted prices.
- Hivemind Capital and Dragonfly Capital lead strategic funding.
Avalanche Foundation Plans Major Investment in AVAX
The Avalanche Foundation, the nonprofit behind the Avalanche blockchain, is preparing to launch two investment vehicles in the United States, according to the Financial Times, citing people familiar with the matter. The foundation aims to raise about $1 billion and expects both deals to close within a few weeks.
The raised funds will be used to purchase millions of AVAX tokens, with investors able to acquire the coins directly from the Avalanche Foundation at discounted prices.
Details of the Investment Structures
The first investment vehicle plans to raise up to $500 million through private investment, supervised by Hivemind Capital. Deal advisor Anthony Scaramucci, a crypto investor and former White House press secretary, is assisting with the structure.
The second vehicle is structured through a SPAC sponsored by Dragonfly Capital and also targets $500 million. Sources note that this deal may not finalize until October. Both companies will initially purchase AVAX directly from the Avalanche Foundation at discounted rates.
At the time of writing, AVAX is trading around $29. The dual investment strategy is expected to provide strong market support and liquidity for AVAX, while positioning the Avalanche Foundation as a key player in US blockchain investment. Analysts predict that these moves could accelerate adoption of Avalanche’s ecosystem and increase investor confidence in the long-term value of AVAX tokens.
