Quick take:
- The Foundation was reportedly in talks to raise up to $500 million through a private investment led by Hivemind Capital.
- The deal, which involves an unnamed Nasdaq-listed company, is said to be planned to close by the end of this month.
- A second deal would result in the creation of an AVAX treasury company via a special purpose acquisition company (SPAC).
Avalanche Foundation, the non-profit entity behind the Avalanche blockchain, is targeting $1 billion in funding for its strategic digital asset treasury. According to the report by the FT, the Foundation plans to create two companies that will acquire millions of AVAX tokens.
The AVAX tokens will be bought from the foundation at a discounted price, the FT cited people familiar with the matter. The Foundation was reportedly already in talks to raise up to $500 million through a private investment led by Hivemind Capital.
The deal, which involves an unnamed Nasdaq-listed company, is said to be planned to close by the end of this month. According to the report, former White House press secretary Anthony Scaramucci was advising on the deal.
A second deal would result in the creation of an AVAX treasury company via a special purpose acquisition company (SPAC).
This won’t be the first time a crypto company has looked to a SPAC as an avenue for going public. Earlier this year, David Bailey’s Bitcoin company Nakamoto teamed up with the Nasdaq-listed KindlyMD with the intention of establishing a public digital asset treasury. Justin Sun’s Tron linked up with SRM Entertainment in June.
The announcement comes amid the continued interest from the mainstream to establish digital asset treasuries amid progress in establishing a clear framework for regulating digital assets in the U.S.
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The post Avalanche Foundation Eyes $1B Raise for Two New AVAX Treasury Companies appeared first on NFTgators.