Avalanche Foundation raises $1 billion from DATs

Two fundraising options

The Fund's strategy, detailed in reports from September 2025, includes two parallel options:

• Private equity fundraising led by Hivemind Capital: Aims for $500 million to convert a Nasdaq-listed company into an AVAX reserve fund, with advice from Anthony Scaramucci.

• SPAC scheme with Dragonfly Capital: Aiming for another $500 million through special purpose acquisitions, expected to complete in October 2025.

The proceeds will fund the purchase of AVAX at a preferential price directly from the Fund's reserve (limited to 720 million tokens, with approximately 420 million tokens in circulation), creating long-term investors and reducing selling pressure.

Avalanche Treasury Co. (AVAT), the flagship entity, announced a $675 million merger with Mountain Lake Acquisition Corp. in October, which included $460 million in reserve assets and an exclusive 18-month priority right to the Treasury's token sales to U.S. companies—beginning with a $200 million preferential purchase of AVAX.

Impact on the Avalanche ecosystem

If successfully implemented, financial management companies could significantly reshape the Avalanche ecosystem.

They offer capital stability. Instead of relying solely on market cycles, Avalanche has the support of a structured balance sheet, which can reduce volatility and finance long-term initiatives.

Enhancing institutional confidence. Professional financial management organizations with clear governance reduce perceived risk for large investors when assessing exposure to Avalanche.

This could boost the adoption of real asset value (RWA), an area where Avalanche has been actively involved through partnerships in tokenized funds, credit, and structured finance.

This creates a feedback loop of capital from organizations that strengthen the ecosystem, thereby attracting more developers and users.

Our review perspective

Avalanche Foundation's plan to build $1 billion in US treasury management firms is a bold step toward institutionalizing the cryptocurrency ecosystem's finance. It demonstrates confidence in the US capital markets, a commitment to professional treasury management, and the ambition to position Avalanche as a long-term infrastructure layer for tokenized finance.

If successful, this initiative could redefine how Tier 1 ecosystems manage capital — shifting from passive reserves to active, regulated financial entities. The message is clear: Avalanche isn't simply building technology; it's building financial institutions around that technology.

Disclaimer: The information presented in this article is the author's personal opinion in the field of cryptocurrency. This is not financial or investment advice. All investment decisions should be based on careful consideration of your personal portfolio and risk tolerance. The views expressed in this article do not represent the official stance of the platform. We recommend that readers conduct their own research and consult with experts before making any investment decisions.

Compiled and analyzed by HCCVenture

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