Avalanche Eyes $1B Raise — Will AVAX Hold $30?
Avalanche is back in the headlines as reports indicate the Avalanche Foundation is pursuing up to $1 billion to create a crypto treasury vehicle that would buy the network’s native token, AVAX. The news coincided with a sharp market move: AVAX jumped 10.93% to a nine-month high of $29.50 before retracing to $28.69 at the time of reporting, completing a week-long price-discovery breakout.
Market activity amplified alongside the price move. Trading volume spiked 109% to $1.94 billion, signaling a substantial influx of capital and heightened on-chain activity. Perpetual futures volume also surged to $23.6 million, levels not seen since July, reflecting increased speculative positioning that typically boosts short-term volatility.
Context for the push into treasury companies is broad institutional demand. Fundraising firms targeting crypto treasuries have raised roughly $16 billion over the past eight months as corporates and investors look to diversify reserves into digital assets. Against that backdrop, the Avalanche Foundation has reportedly been in advanced talks to launch a digital asset treasury company that would raise capital to buy AVAX and support the ecosystem.
Under the reported structure, AVAX would be offered at a discount to participating investors to incentivize subscription. The first tranche is expected to bring in about $500 million via private investment led by Hivemind Capital, with the initial phase slated to be finalized at the end of September. The Avalanche Foundation has not publicly confirmed the plans; Hivemind is the only party to have validated the reports so far.
“Hivemind is the only party to have validated the reports so far.”
Implications are mixed for traders and DeFi participants. A successful raise and coordinated buy program could provide immediate price support and deeper liquidity for AVAX, while discounted allocations and concentrated buying raise questions about token distribution and long-term sell pressure. Elevated perpetuals activity warns of larger intraday swings, so key levels near $30 and the recent pullback to $28.69 will be critical for assessing whether AVAX can sustain the breakout.
- Target raise: up to $1 billion
- Planned first tranche: ~ $500 million, led by Hivemind Capital
- Price action: +10.93% to $29.50, retraced to $28.69
- Spot trading volume: +109% to $1.94 billion
- Perpetual futures volume: $23.6 million (highest since July)
- Institutional treasury fundraising (past 8 months): roughly $16 billion
As institutional treasury activity continues to shape capital flows across Bitcoin, Ethereum and layer-1 ecosystems, the Avalanche story will be a focal point for traders, DeFi projects and on-chain watchers looking for signals of coordinated capital deployment and its market effects.
