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The Avalanche Foundation’s Ambitious Fundraising Initiative
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The Avalanche Foundation, a dedicated non-profit entity supporting the Avalanche (AVAX) blockchain ecosystem, is setting its sights on a monumental fundraising goal of $1 billion. This ambitious campaign aims to establish two strategic AVAX treasuries, aligning with a growing trend in the cryptocurrency world where numerous organizations and traditional financial institutions are exploring crypto treasury models to bolster their financial resilience and operational prowess.
Offering Discounted AVAX Tokens to Institutional Investors
According to insights from the Financial Times, the Avalanche Foundation is engaged in advanced discussions to establish two crypto treasuries within the United States. This initiative is gathering momentum among institutional investors, with influential entities like BlackRock and Visa already integrating the Avalanche blockchain into their operations.
The foundation’s vision includes the launch of a new digital asset treasury firm and the conversion of an existing entity into a treasury vehicle. The primary objective is to amass approximately $1 billion, with plans to conclude these deals within several weeks. The funds procured are designated for the acquisition of millions of AVAX tokens, offered at discounted rates directly from the Avalanche Foundation.
This strategic move aims to not only fuel the foundation’s expansion but also to bolster the liquidity and market influence of AVAX in an increasingly competitive treasury landscape.
Current Market Dynamics: AVAX Price Nears $30
The initial phase of the fundraising effort seeks to gather up to $500 million through a private investment spearheaded by Hivemind Capital, with the goal of finalizing this agreement by the month’s end. Notably, Anthony Scaramucci, a prominent crypto investor and former White House press secretary, is providing advisory support for this endeavor.
The second funding strategy involves a special purpose acquisition vehicle (SPAC) sponsored by Dragonfly Capital, aiming for another $500 million in capital. This particular deal may extend into October before reaching completion.
Both initiatives are focused on acquiring discounted AVAX tokens currently held by the Avalanche Foundation, which boasts a total supply of 720 million tokens, with around 420 million in circulation.
The Cryptocurrency Market’s Fundraising Boom
This year, the broader cryptocurrency market has experienced a significant surge in fundraising activities. Companies have collectively raised over $16 billion to accumulate crypto assets, inspired by the successful Bitcoin (BTC) treasury strategy formerly executed by MicroStrategy.
Tokens linked to other blockchain networks, such as Ethereum (ETH) and Solana (SOL), have also witnessed notable price surges. These tokens have become popular choices for major publicly traded companies in the US looking to develop their crypto-centric treasuries.
While AVAX has not mirrored the same upward momentum, data from CoinGecko reveals a weekly gain of up to 17%. As of now, the AVAX price is approaching the pivotal $30 mark, a level not reached since February of this year.
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