The Avalanche Foundation is pivoting from protocol development to a Wall Street-style treasury model, targeting roughly $1 billion in institutional capital via corporate vehicles and SPACs, signalling a new era for blockchain asset management.
The Avalanche Foundation is shifting its capital strategy from pure protocol development to a Wall Street-style treasury play, pursuing roughly $1 billion in institutional capital by helping to seed two US-based corporate vehicles that would hold large quantities of AVAX. According to CryptoNinjas, the plan comprises two separate $500 million transactions: a private investment into a Nasdaq-listed company led by Hivemind Capital Partners with SkyBridge Capital advising, and a $500 million SPAC backed by Dragonfly Capital that would build a second AVAX treasury. Both vehicles would acquire tokens directly from the foundation’s reserves.
The move represents a deliberate turn towards the corporate digital-asset treasury model popularised by firms such as MicroStrategy. Industry participants say the appeal is simple: regulated, publicly listed vehicles let institutional investors gain exposure to AVAX without confronting direct token custody and exchange custody complexities. CryptoNinjas notes the foundation’s stated aim is to convert part of its reserve into “sticky” institutional holdings that reduce circulating supply and strengthen the protocol’s balance sheet.
Avalanche’s broader 2025 push to court institutional and regional partners frames the timing of the treasury initiative. The foundation recently established the Avalanche DLT Foundation in the Abu Dhabi Global Market, signalling intent to anchor operations in a major MENA regulatory hub. CryptoNinjas highlighted commercial pilots such as the collaboration with LuLu Financial Holdings on blockchain remittances and ties with Hub71 to connect UAE startups to global markets. M2 Capital’s announced $21 million strategic investment in AVAX One Digital Asset Treasury, a Nasdaq-listed AVAX-focused vehicle, underscores regional investor interest, according to press releases carried by TheStreet and Finextra.
On-chain product development and protocol economics are being advanced in parallel. The foundation is promoting the Avalanche9000 upgrade, particularly the “Etna” change that removes the old 2,000 AVAX-per-validator requirement, to lower the cost and capital barrier for launching Subnets by up to 99.9%. The foundation argues this will make Avalanche more accessible for enterprise chains and drive real-world usage, which in turn could support demand for tokens held in corporate treasuries.
The initiative also dovetails with financial-product innovations aimed at giving institutional buyers yield and regulatory comfort. CryptoNinjas reports that VanEck has amended a spot AVAX ETF filing to contemplate staking underlying holdings via a custodian such as Coinbase, a design that would allow funds to earn staking rewards in addition to price exposure. Separately, Avalanche’s own announcements and industry coverage show SkyBridge Capital intends to tokenise roughly $300 million of hedge-fund assets on Avalanche, working with Tokeny and Apex Group to bring alternative investments on-chain, a project reported by Avalanche’s press office and by CoinDesk.
Taken together, these developments illustrate a coordinated strategy: reduce on‑chain frictions, broaden regulated access to AVAX, and use foundation reserves to seed long-term institutional demand. The foundation’s sale of tokens into two corporate treasuries would lock up supply and create publicly visible, regulated AVAX holders; CryptoNinjas and related coverage characterise this as an attempt to shift tokenomics away from retail speculation toward longer-duration institutional capital.
There are, however, governance and market risks. Selling material amounts from foundation reserves to affiliated or affiliated-advised vehicles raises questions about market signalling and concentration of ownership, and regulatory scrutiny of tokenised securities and SPACs remains uneven across jurisdictions. Industry commentary cited by CryptoNinjas and Coindesk highlights that while tokenisation and treasury strategies can deepen institutional engagement, they also invite closer examination from regulators and investors about disclosure, custody arrangements, and conflicts of interest.
As the Dragonfly-backed SPAC and the Hivemind-led Nasdaq deal advance, market participants will be watching whether other Layer‑1 projects follow with similar corporate-treasury blueprints, and whether the vehicles called into being actually deliver the liquidity, custody safeguards and long-term lockup the foundation expects. M2’s recent minority stake in a Nasdaq AVAX treasury and SkyBridge’s tokenisation plans provide early market validation; whether they translate into sustained institutional adoption will depend on execution, regulatory clarity and the evolving economics of staking and spot ETFs.
- https://www.cryptoninjas.net/news/avalanche-foundation-eyes-1b-institutional-capital-via-us-corporate-treasuries/ – Please view link – unable to able to access data
- https://www.cryptoninjas.net/news/avalanche-foundation-eyes-1b-institutional-capital-via-us-corporate-treasuries/ – The Avalanche Foundation is pursuing a $1 billion fundraising initiative to establish two U.S.-based AVAX treasury companies. The first involves a $500 million private investment led by Hivemind Capital Partners, with Anthony Scaramucci’s SkyBridge Capital advising. The second is a $500 million SPAC backed by Dragonfly Capital. Both aim to purchase large quantities of AVAX directly from the foundation’s reserves, enhancing institutional holdings and capital reserves. ([coincodex.com](https://coincodex.com/article/72984/avalanche-foundation-eyes-1-billion-raise-to-launch-avax-treasury-companies/?utm_source=openai))
- https://www.avax.network/about/press/skybridge-capital-to-tokenize-300m-on-avalanche/ – SkyBridge Capital, led by Anthony Scaramucci, plans to tokenize $300 million of its hedge funds on the Avalanche blockchain. In partnership with Tokeny and Apex Group Ltd., this initiative aims to modernize the alternative investment landscape by bringing funds on-chain, improving transparency, liquidity, and accessibility for investors. ([avax.network](https://www.avax.network/about/press/skybridge-capital-to-tokenize-300m-on-avalanche/?utm_source=openai))
- https://www.hivemind.capital/portfolio/avax – Hivemind Capital Partners is an investment firm focused on institutionalizing digital asset investing. They have invested in Avalanche (AVAX), a high-performance blockchain platform designed for scalability and interoperability. Avalanche ensures near-instant finality for transactions and enables the creation of interoperable Layer 1 blockchains on both public and private networks. ([hivemind.capital](https://www.hivemind.capital/portfolio/avax?utm_source=openai))
- https://www.coindesk.com/business/2025/08/19/scaramucci-s-skybridge-capital-to-tokenize-300m-in-hedge-funds-on-avalanche/ – SkyBridge Capital, founded by Anthony Scaramucci, plans to tokenize $300 million of its hedge funds on the Avalanche network. The firm is collaborating with Tokeny and Apex Group to bring its funds on-chain using the ERC-3643 token standard, aiming to modernize the alternative investment landscape by improving transparency, liquidity, and accessibility for investors. ([coindesk.com](https://www.coindesk.com/business/2025/08/19/scaramucci-s-skybridge-capital-to-tokenize-usd300m-in-hedge-funds-on-avalanche?utm_source=openai))
- https://www.thestreet.com/crypto/press-releases/m2-capital-announces-21-million-investment-in-avax-digital-asset-treasury-avax-one – M2 Capital Limited, the proprietary investment arm of M2 Group, has announced a $21 million strategic investment in AVAX One Digital Asset Treasury (DAT), a Nasdaq-listed company focused on AVAX, the native token of the Avalanche ecosystem. This investment aligns with M2 Capital’s strategy to bridge global blockchain innovation with the growing demand for compliant digital assets in the MENA region. ([thestreet.com](https://www.thestreet.com/crypto/press-releases/m2-capital-announces-21-million-investment-in-avax-digital-asset-treasury-avax-one?utm_source=openai))
- https://www.finextra.com/pressarticle/107528/m2-capital-invests-21m-in-avax-one-digital-asset-treasury – M2 Capital Limited, the proprietary investment arm of M2 Group, has announced a $21 million strategic investment in AVAX One Digital Asset Treasury (DAT), a Nasdaq-listed company focused on AVAX, the native token of the Avalanche ecosystem. This investment reflects M2 Capital’s long-term strategy to bridge global blockchain innovation with the growing appetite for compliant digital assets in the MENA region. ([finextra.com](https://www.finextra.com/pressarticle/107528/m2-capital-invests-21m-in-avax-one-digital-asset-treasury?utm_source=openai))
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
8
Notes:
The narrative is recent, dated December 29, 2025. Similar reports from October 2025 discuss Avalanche Treasury Co.’s $675 million merger with Mountain Lake Acquisition Corp., aiming to build a $1 billion ecosystem treasury. ([nasdaq.com](https://www.nasdaq.com/press-release/avalanche-treasury-co-announces-675-million-business-combination-mountain-lake?utm_source=openai)) The current report introduces new details about the Avalanche Foundation’s strategy to raise $1 billion through two U.S.-based corporate treasury vehicles, indicating a fresh development. The earlier reports do not mention the involvement of Hivemind Capital Partners and SkyBridge Capital, suggesting the current narrative is not recycled. The presence of updated data and new partnerships justifies a higher freshness score. However, the earlier reports from October 2025 may indicate that the core strategy was previously announced, with the current report providing additional details. This overlap suggests a moderate freshness score.
Quotes check
Score:
9
Notes:
The current narrative includes direct quotes from the Avalanche Foundation’s press release, such as:
> “The idea is to have a permanent capital vehicle.” ([nasdaq.com](https://www.nasdaq.com/press-release/avalanche-treasury-co-announces-675-million-business-combination-mountain-lake?utm_source=openai))
These quotes are consistent with the press release dated October 1, 2025. No earlier usage of these exact quotes was found, indicating they are original to the current report. The consistency of wording across sources suggests the quotes are accurately attributed.
Source reliability
Score:
7
Notes:
The narrative originates from CryptoNinjas, a cryptocurrency news outlet. While it provides detailed coverage, its reputation is not as established as major news organisations. The report cites information from the Avalanche Foundation’s press release and mentions reputable entities like Hivemind Capital Partners and SkyBridge Capital. However, the reliance on a single source for the primary information introduces some uncertainty regarding the narrative’s reliability.
Plausability check
Score:
8
Notes:
The narrative outlines a strategic move by the Avalanche Foundation to raise $1 billion through two U.S.-based corporate treasury vehicles, aiming to accumulate AVAX tokens and attract institutional investors. This aligns with the foundation’s previous initiatives to integrate with traditional finance, such as the $250 million raised from Galaxy Digital and others in December 2024. ([forbes.com](https://www.forbes.com/sites/digital-assets/2024/12/12/despite-being-flush-avalanche-raises-250-million-from-galaxy-and-others/?utm_source=openai)) The involvement of established firms like Hivemind Capital Partners and SkyBridge Capital adds credibility to the plan. The strategy is consistent with industry trends of blockchain projects seeking institutional investment through structured financial vehicles. The narrative’s claims are plausible and supported by recent developments in the Avalanche ecosystem.
Overall assessment
Verdict (FAIL, OPEN, PASS): PASS
Confidence (LOW, MEDIUM, HIGH): MEDIUM
Summary:
The narrative presents a plausible and timely development in the Avalanche Foundation’s strategy to attract institutional capital. While the source’s reliability is moderate, the consistency of quotes and alignment with recent industry trends support the narrative’s credibility. The involvement of reputable firms and the introduction of new details not found in earlier reports further substantiate the narrative.