The Avalanche Foundation, the nonprofit behind the Layer-1 blockchain platform Avalanche, is undergoing high-level consultations to establish two new cryptocurrency companies in the United States.
The Avalanche Foundation is set to establish a billion-dollar avax financing company in the US
The foundation aims to raise about $1 billion, and according to the Financial Times, the deal is expected to be finalized in the coming weeks, citing sources familiar with the issue.
One planned initiative is to convert a company registered with NASDAQ into a financial vehicle. This is a transaction that involves planned private investments of up to $500 million.
The investment was led by Hivemind Capital and advised by Skybridge Capital founder Anthony Scaramucci, and was reported to be expected to be completed by the end of September.
The other agreement will be made through a special purpose acquisition company (SPAC) backed by Dragonfly Capital.
By generating revenue, the founded companies purchase millions of avax tokens, which were reported to be offered at discounted prices by the Avalanche Foundation.
This move coincides with the recent acceleration of the agency’s Digital Assets Treasury (DAT) trend, in which many large companies acquire publicly traded companies and turn them into Cryptocurrency.
Meanwhile, the avalanche network is currently being tested for tokenization of funds by investment giants such as BlackRock, Apollo and Wellington asset management. Following the news, Avax prices rose 10.17% in the last 24 hours to reach $29.11.
*This is not investment advice.
