The Avalanche Foundation is reportedly in advanced talks to launch a massive fundraising initiative, with plans to raise <b>$1 billion</b> to establish a new reserve. The funds will be used to acquire millions of its native <a href="https://www.cryptoknowmics.com/news/avalanche-avax-targets-new-highs-resumes-rally-toward-45-and-beyond/" target="_blank" rel="noopener">AVAX</a> tokens, a strategic move designed to attract institutional investors and bolster the ecosystem. This ambitious plan involves creating two distinct fundraising vehicles, blending traditional financial structures with the world of digital assets.
<h2>A Two-Pronged Institutional Strategy</h2>
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According to a recent report, the fundraising will be conducted through a two-pronged approach. One transaction is being spearheaded by digital asset investment firm <b>Hivemind Capital Partners</b>, aiming to raise roughly $500 million. This deal is structured to use a Nasdaq-listed company as the primary investment vehicle. The second part of the initiative involves a <b>special purpose acquisition company (SPAC)</b> backed by venture capital firm <b>Dragonfly Capital</b>, which is also targeting a similar amount of capital. This strategy provides institutional investors with an opportunity to gain exposure to AVAX tokens at discounted rates.
<h2>Impact on the Market</h2>
The successful completion of this $1 billion fundraising effort would have a significant impact on the Avalanche ecosystem. By purchasing a large volume of AVAX and moving it into a structured treasury, the foundation could effectively reduce the circulating supply, potentially creating upward pressure on the token's value. The initiative also highlights a growing trend of blockchain foundations adopting sophisticated financial mechanisms to support their networks' long-term growth and decentralization. If successful, it could serve as a blueprint for how other major crypto projects secure institutional backing in the future.

Avalanche Foundation to Raise $1B for AVAX Reserve

The Avalanche Foundation reportedly plans to raise $1B via a SPAC and an investment firm to create a new AVAX Reserve.

Avalanche Foundation to Raise $1B for AVAX Reserve

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