Avalanche raises $1 billion to acquire avax and boost layer-1

Fundraising Plan

The Avalanche Foundation’s $1 billion raise is structured into two separate deals, each targeting $500 million to buy back AVAX tokens, the native cryptocurrency of the Avalanche network:

Hivemind Capital, a New York-based blockchain investment firm, is leading a private placement to raise up to $500 million through a Nasdaq-listed company that will be converted into a digital asset investment fund.

Lead Advisor: Anthony Scaramucci, founder of SkyBridge Capital and a prominent crypto investor, is advising on the deal, bringing credibility and visibility to the initiative.

The transaction is expected to close by the end of September 2025, positioning it as a short-term catalyst for AVAX’s market momentum.

Dragonfly Capital, a major cryptocurrency investment firm, is funding a $500 million special purpose acquisition company (SPAC) to create a second digital asset investment fund.

Both companies will purchase AVAX tokens directly from the Avalanche Foundation at a discounted price, a move designed to encourage institutional participation while providing the Foundation with significant capital to fund network development, ecosystem funding, and adoption initiatives. The structure reflects the growing trend of blockchain platforms using traditional financial means to bridge the crypto and institutional markets.

Feedback from the Avelanche community

The announcement sparked an immediate market reaction, with AVAX jumping 8-10% to nearly $28, breaking out of a 213-day consolidation period. Avalanche’s market capitalization, estimated at $12.2 billion as of September 11, 2025, makes it the 21st largest cryptocurrency, according to CoinGecko. The rally reflects investor optimism about its ability to attract institutional capital and reinforces AVAX’s utility in the Foundation’s high-throughput Layer 1 ecosystem.

Selling tokens at a discount could create short-term selling pressure if treasury firms sell AVAX in the future, but the Foundation’s controlled distribution strategy is intended to mitigate this risk. By selling tokens directly to institutional vehicles, Avalanche ensures that large-scale token accumulation remains structured, avoiding the volatility associated with open-market purchases.

Evaluation and Conclusion

The Avalanche Foundation’s $1 billion fundraising initiative marks a milestone for the Avalanche blockchain, demonstrating its ambition to lead the Layer-1 space through institutional adoption and ecosystem growth. By leveraging Hivemind Capital, Dragonfly Capital, and the expertise of Anthony Scaramucci, the Foundation is positioning AVAX as the foundation for tokenized finance. However, the recent outage on the Polygon network is a reminder that technical reliability and community trust are key to maintaining momentum in a competitive blockchain landscape.

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