According to a report by the Financial Times, insiders indicate that the Avalanche Foundation, the non-profit behind the AVAX token, is preparing to establish two crypto-focused companies in the United States. One will act as its designated “digital asset treasury” company, while the other will be converted into a similar crypto-focused vehicle.
The foundation is reportedly in discussions with multiple investment firms to raise around $1 billion to acquire millions of AVAX tokens, which would then be held at a “discounted price.”
The first project will be led by Web3 investment firm Hivemind Capital, aiming to raise up to $500 million from publicly listed Nasdaq companies. Renowned crypto investor and former White House Press Secretary Anthony Scaramucci is set to advise on the deal. Sources say the first transaction is expected to be finalized by the end of the month. Avalanche and Scaramucci did not respond to requests for comment from the Financial Times.
The second deal will be executed through a special purpose acquisition vehicle sponsored by Dragonfly Capital. Like the first, it also targets $500 million, but insiders told FT that this transaction is likely to close by October.
The foundation’s plan to acquire $1 billion in AVAX comes amid a decline in share prices for many crypto treasury companies, including Metaplanet and Strategy. While these firms have typically focused on Bitcoin and Ethereum accumulation, the market trend reflects waning trader confidence in crypto-hoarding businesses.
Meanwhile, tokens linked to Solana and Ethereum have seen strong performance in recent months, fueled by a wave of fundraising by firms seeking to stockpile crypto assets. Data from Kaiko shows companies have raised over $16 billion so far this year to purchase digital assets.
Avalanche Price Analysis: AVAX Shows Strong Momentum
TradingView data shows that AVAX has surged from the mid-$25 range to just above $29 within the past hour, breaking out from the sideways trading observed in early September, where the token consolidated between $24 and $26.
The sharp upward movement signals renewed buying interest, likely driven by the Avalanche Foundation’s token buyback plans in the U.S. crypto treasury initiative.
At press time, AVAX is up 10.7% in the past 24 hours and has risen 16.4% over the past week, edging closer to the $30 mark.
Resistance is forming at the $30 psychological level, where selling pressure has already emerged. On the downside, support is expected between $27.50 and $28, a zone that previously acted as a breakout point during the recent rally. If AVAX holds above this support on a pullback, it would reinforce the bullish trend. Conversely, a drop below $27 could see the token retrace toward $26.
The RSI recently climbed above 70, signaling overbought conditions, before pulling back to around 62.93. This suggests that while AVAX remains in bullish territory, the market may be entering a short-term cooling-off phase following the sharp rally. Traders might view this as a potential retracement or a period of sideways consolidation before the next upward move.
