Avalanche Foundation Plans $1B Treasury Initiative to Buy Back

Web3-focused investment firm Hivemind Capital Partners will spearhead the first project. They hope to raise up to $500 million. A Nasdaq-listed company is expected to contribute to the capital. Anthony Scaramucci, a well-known crypto investor and former White House Press Secretary, is an advisor. Scaramucci has been part of large-scale crypto efforts before. His advisory role gives credibility and public attention to the project.

Second Project Dragonfly Capital and SPAC

The second treasury initiative is led by Dragonfly Capital, a global investment firm that specializes in blockchain, digital assets, and DeFi. This project is organized as a Special Purpose Acquisition Company, or SPAC. Dragonfly also has the goal of raising $500 million. SPAC structures enable quick deployment of capital and possible mergers with other companies/assets. This could speed up the growth of Avalanche’s ecosystem.

The Avalanche Foundation operates the Avalanche blockchain. AVAX is its native token. AVAX is used for transaction fees, staking and governance. Buying back tokens at a discount is not an uncommon strategy in crypto. It decreases the supply that is circulating and may potentially increase the value of the tokens. This approach is in line with the previous actions. For example, Avalanche committed $50 million to tokenized assets in the “Avalanche Vista” program in 2023.

Hivemind and Traditional Finance Expertise

Hivemind Capital Partners is a specialist institutional digital asset investor. Their involvement hints at an attempt to introduce traditional finance know-how to Avalanche. The use of a Nasdaq-listed company is a credibility reinforcer. Anthony Scaramucci’s advisory role further strengthens the link to established financial networks. His recent work includes a $100 million Toncoin initiative with AlphaTON Capital Corp. indicating his active engagement in 2025’s crypto market.

Dragonfly is a name admired in crypto investment. They previously took part in Avalanche’s $250 million Avalanche9000 token sale. Using a SPAC enables them to raise funds more quickly and to invest in strategic opportunities. This approach demonstrates increasing institutional confidence in the ecosystem of Avalanche.

Market Implications

The $1 billion target is a lot. It dwarfs Avalanche’s $50 million commitment from 2023. The plan could boost network adoption and generate upward pressure on AVAX’s price. Community members compare this to “buyback” strategy. Comparisons have been drawn to protocols such as Ethereum’s EIP-1559 and Avalanche’s VISTA program. These mechanisms cause a decrease in the supply in circulation, which can support long-term price growth.

Operating U.S.-based treasury companies: regulatory oversight. The SEC believes that tokenized assets are crypto-assets that fall under balance sheet reporting. This may have an impact on the way the treasury companies function. Institutional investors also may be sensitive to regulatory scrutiny before allocating capital. Avalanche has a history of using the treasury funds to aid ecosystem growth. Past initiatives, such as the $250 million token sale and $50 million tokenization program set a precedent. This $1 billion effort is an amplified version of previous strategies.

Looking Ahead

Anthony Scaramucci’s role may help bridge the traditional finance and crypto markets. Both Hivemind and Dragonfly come with experience and credibility. Investors and market participants will likely pay close attention to AVAX price movements. Regulatory compliance, institutional participation and execution efficiency will all be key factors in the success of this initiative.