Avalanche crypto treasury plan seeks $1B to buy AVAX, drive institutional adoption, and connect DeFi with TradFi for blockchain growth
Author: Akshay
Published On: Thu, 11 Sep 2025 09:54:53 GMT
Singapore, September 11, 2025 – The Avalanche Foundation is preparing to raise $1 billion to establish two Avalanche crypto treasury companies in the U.S. The news was reported by the Financial Times today at 1:33 PM IST. The plan includes purchasing millions of AVAX tokens at discounted rates directly from the foundation. This bold strategy is designed to strengthen Avalanche’s ecosystem and attract significant institutional capital. It also aims to bridge decentralized finance (DeFi) with traditional finance (TradFi). As a result, Avalanche is positioning itself as a stronger player in the evolving blockchain landscape.
The initiative involves a $500 million private investment in a Nasdaq-traded company and another $500 million for a corporate conversion deal, thereby underlining Avalanche’s push to integrate deeper into mainstream financial structures. Moreover, by channeling funds into Avalanche crypto treasury vehicles, the foundation aims to replicate successful models of corporate digital asset treasuries, particularly those pioneered by MicroStrategy’s Bitcoin accumulation
Avalanche launched its mainnet in 2020 and quickly gained traction since it offered high throughput and near-instant transaction finality. Moreover, with a market cap above $10 billion, it has become a major Layer-1 contender. The Avalanche crypto treasury plan therefore builds on past strategies, including a 2024 buyback of 1.97 million AVAX at a 42% discount, which in fact saved the foundation $12 million.
The $1 billion raise could therefore have a profound impact on AVAX’s market dynamics. Analysts suggest it may drive prices from $24.54 to the $30–$50 resistance range, potentially doubling from current levels. Moreover, the discounted buyback structure could spark speculative trading, thereby increasing liquidity while also adding short-term volatility. Meanwhile, institutional open interest has already surged past $1 billion, signaling growing investor appetite for Avalanche.
By 2030, Avalanche crypto treasury companies may redefine blockchain finance. They could serve as a model for other protocols seeking institutional credibility. The move might elevate AVAX’s market cap to $50 billion. At the same time, it could accelerate adoption in DeFi, gaming, and tokenized asset markets.
In addition, the treasury framework could advance regulatory clarity in the U.S. and globally. This would foster a hybrid financial system where TradFi meets DeFi. For Avalanche, the strategy may establish AVAX as a cornerstone of the digital economy. It could also reshape how institutions engage with blockchain assets worldwide.
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