Avalanche Foundation is in talks with investors to establish two AVAX reserve companies.
Avalanche Foundation is reportedly planning to raise approximately $1 billion via two cryptocurrency-hoarding vehicles in the US.
The Financial Times reported Thursday that the non-profit group is in talks with investors to establish two AVAX reserve companies.
Sources familiar with the matter told the publication that the funds raised will be used to purchase “millions of AVAX.”
“Avax would be available from Avalanche Foundation at a discounted price,” the sources said, declining to comment further.
The first vehicle, led by Hivemind Capital, plans to raise $500 million through a private placement of a Nasdaq-listed company.
Anthony Scaramucci, crypto investor and founder of SkyBridge Capital, is serving as an advisor on the deal, the report noted. Scaramucci has been part of similar large-scale crypto efforts before, and his advisory role brings public attention to the project.
The deal is likely to be finalized by September end, the FT report added.
The second deal is a $500M special purpose acquisition company (SPAC) launched by the global blockchain investor Dragonfly Capital. The deal would likely not conclude until October, it said.
SPAC structures enable quick capital deployment and possible mergers, speeding up the Avalanche ecosystem’s growth.
The native token of the Avalanche blockchain has shown a strong bullish trajectory on Thursday, following the announcement.
AVAX rose 8.55% in the past 24h, outperforming its 7-day and 30-day trends. Additionally, driven by DeFi platforms and memecoin activity, Avalanche processed 11.9M transactions in the past week.
Besides, Avalanche is gaining traction among investment firms such as BlackRock, Apollo and Wellington Asset Management, which have tried tokenized versions of funds on it.
On the technical front, AVAX is testing $27 resistance after forming a bullish double bottom pattern. The RSI at 69.99 shows room for upscale, confirming bullish momentum. The token is currently trading at $28.77 at press time, per CoinMarketCap data.
