Avalanche Foundation Plans to Raise $1B via Hivemind & Dragonfly

How Avalanche Foundation Plans Could Change the AVAX Market

Avalanche Foundation Plans $1 Billion to Buy AVAX 

The Firm is in talks with investors to raise about $1 billion according to the Finncial Times. The money would be raised through two U.S. “digital asset treasury” companies. The plan is to use the funds to buy millions of AVAX coins from the Foundation at a discount. This move is meant to strengthen the Avalanche network and give the AVAX market more backing. 

Source : Financial Times

Deal Details: Two Vehicles, Two Partners

One deal is led by Hivemind Capital and would raise up to $500 million by converting an existing Nasdaq-listed company into a digital-asset treasury. Anthony Scaramucci, a crypto investor and former White House Communications Director, is said to be advising on that deal. 

The second is a $500 million SPAC effort backed by Dragonfly Capital and the deal may close a little later. Both firms would initially buy discounted tokens held by the Foundation.

How this strategy supports the AVAX token

If these two treasury firms complete purchases, they will take large amounts of tokens off the open market and hold them in company treasuries. This reduces the number of tokens available for everyday trading (liquid supply). 

Fewer tokens for sale can help steady the price and lower volatility if buyers stay long-term. It can also show institutional confidence in the company and attract more investors. However, this strategy will benefit both token and Avalanche Foundation.

AVAX hits new ATH as Price Surged Massively

Avalanche's all-time high was in 2021 at about $145. However today’s levels remain well below that peak. The recent Avalanche Foundation plans treasury news has pushed the price up to around $29 setting new ATH.

Source : Coinmarketcap

The token is trading at $28 with a 24% hike in the past 30 days (at the time of writing). The market cap and 24hr volume also surged massively. If both deals close and buying starts, a reasonable short-term target could be $32–$40 as buying pressure removes tokens from circulation and sentiment improves. 

If deals fail or macro markets turn negative, prices could fall back toward $20–$25. This is a scenario-based view, not financial advice. 

Now the crypto analysts are in a dilemma to buy or sell off tokens to take profits. As the deal could spark the token price and on other hand if not closed it could lead to a downfall. 

Risks and cautions

• Treasury stock deals can be delayed or fail.

• Token sales from a foundation, even at a discount, may be viewed skeptically by some traders.

• Macro crypto sentiment and wider market moves matter more than a single program. Treat any investment decision with caution and check up-to-the-minute data. 

Looking at the past history AVAX price is very volatile and investors are suggested to always do your own research before investing in crypto currency.