This $1 billion fundraising effort isn’t your typical venture capital round or retail token dump. Instead, Avalanche is leaning into a model popularized by firms like MicroStrategy: the corporate digital asset treasury. While companies have bought Bitcoin for years, this is a rare instance of a blockchain foundation helping to stand up public-market vehicles specifically to hold its native token.
The first part of the plan is a $500 million private investment into a company already trading on the Nasdaq. Hivemind Capital Partners is leading the charge here, with Anthony Scaramucci’s SkyBridge Capital acting as an advisor. The goal is simple: turn this entity into a massive AVAX holder. This gives institutional players a way to get exposure to Avalanche through a regulated stock rather than dealing with the headaches of direct token custody.
The second half involves a Special Purpose Acquisition Company (SPAC) backed by Dragonfly Capital. Like the Nasdaq deal, this vehicle wants to raise $500 million to build its own AVAX treasury. By selling these tokens directly from the foundation’s own holdings, the team can manage the supply more effectively while securing a massive war chest for future growth.
During the Abu Dhabi Finance Week, the foundation set up the Avalanche DLT Foundation inside the Abu Dhabi Global Market (ADGM). This gives them a solid legal footing in a region that has become a global hub for crypto regulation.
LuLu Financial Holdings is working with Avalanche to build blockchain-based remittance tools. They’ve also teamed up with Hub71 to help local startups bridge the gap between the UAE and the global crypto market. On the technical side, the foundation is betting big on the Avalanche9000 upgrade. The main goal here is to slash the cost of launching a “Subnet”-a custom blockchain built on top of Avalanche-by as much as 99.9%.
In the past, the high cost of entry kept smaller companies away, but this update changes the math entirely. The “Etna” part of the upgrade is particularly important because it removes the old rule that every validator had to stake 2,000 AVAX. By lowering that barrier, the network becomes far more modular. It allows businesses to spin up their own chains with much less upfront capital, making Avalanche a much more attractive option for enterprise-grade projects.
All this institutional maneuvering comes at a time when Wall Street is getting much more comfortable with the idea of crypto ETFs. VanEck has been refining its spot AVAX ETF filing, recently adding a proposal that would allow the fund to actually stake the tokens it holds. If approved, the fund could stake a large portion of its AVAX through Coinbase, giving investors a way to earn yield on top of price appreciation.
For long-term holders, the most interesting part of the $1 billion raise is what it does to the circulating supply. When these corporate treasuries buy millions of tokens, they aren’t looking to day-trade them. They are looking to hold them for years. This shifts the tokenomics away from speculative retail trading and toward “sticky” institutional capital. As the Dragonfly SPAC deal moves toward a close, the industry will be watching to see if other Layer-1s try to copy this corporate treasury blueprint.
This week, Avalanche is advancing a corporate treasury approach to its native token by pursuing a pair of substantial moves. A private $500 million investment led by Hivemind Capital Partners, with SkyBridge Capital advising, aims to convert the vehicle into a major AVAX holder, giving institutional investors regulated exposure without direct token custody. A second leg involves a Dragonfly Capital-backed SPAC seeking another $500 million to build its own AVAX treasury, mirroring the Nasdaq deal but via a listed vehicle.
The push comes as the Avalanche DLT Foundation formalizes its presence in Abu Dhabi, establishing itself within ADGM to secure a solid regulatory foothold. Collaborations with Lulu Financial Holdings and Hub71 are advancing blockchain remittance tools and bridging the UAE with the global crypto market. On the tech side, Avalanche9000 targets a 99.9% reduction in the cost to launch a Subnet, enabling easier deployment of custom chains, while Etna lowers the validator stake barrier from 2,000 AVAX to broaden enterprise adoption. In parallel, VanEck is refining a spot AVAX ETF that could stake tokens via Coinbase, potentially delivering yield to investors alongside price appreciation. For long-term holders, the mechanism could shift tokenomics away from retail speculation toward durable institutional demand, with the industry watching whether other Layer-1s imitate this corporate-treasury blueprint.
For long-term holders, the most interesting part of the $1 billion raise is what it does to the circulating supply. When these corporate treasuries buy millions of tokens, they aren’t looking to day-trade them. They are looking to hold them for years. This shifts the tokenomics away from speculative retail trading and toward “sticky” institutional capital. As the Dragonfly SPAC deal moves toward a close, the industry will be watching to see if other Layer-1s try to copy this corporate treasury blueprint.
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