Hivemind and Dragonfly Capital reportedly involved in major discounted AVAX deals
The Avalanche Foundation is reportedly seeking to raise up to $1 billion to launch digital asset treasury and accumulation vehicles, a move that could reshape the altcoin’s long-term market dynamics.
According to sources cited by the Financial Times, the nonprofit organization behind the Avalanche blockchain is in active talks with investors to establish a digital asset treasury company and convert another into a “crypto-hoarding” vehicle. The plan reportedly involves selling AVAX tokens at a discounted price.
$500M deals with Hivemind and Dragonfly
The fundraising is structured around two separate deals. The first involves a $500 million private placement led by Hivemind Capital, a New York-based blockchain investment firm, in an existing Nasdaq-listed company. The deal is expected to close by the end of the month, with prominent crypto investor and former White House communications director Anthony Scaramucci acting as adviser.
At the time of writing, AVAX is trading at $28.8, marking a 16% surge over the past week. Despite being well below its all-time high of $135 set in November 2021, Avalanche has recently attracted attention from institutional players. In August, Grayscale Investments filed for a spot Avalanche ETF, signaling growing demand from traditional finance.
The second transaction is linked to Dragonfly Capital through a special purpose acquisition vehicle (SPAC), aiming to raise another $500 million. However, sources suggest this deal may not be finalized until October.
AVAX supply impact
If completed, the $1 billion raise would translate to the purchase of around 34.7 million AVAX, equivalent to nearly 8% of the 422.3 million tokens currently in circulation. With a total capped supply of 720 million tokens, such sales could have significant implications for market liquidity and investor sentiment.
A crypto market analyst commented, “Raising this scale of capital through discounted token sales reflects both confidence in Avalanche’s ecosystem and the willingness of major funds to bet on its long-term role in decentralized finance.”
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.