AVAX climbed to a seven-month high after reports surfaced that the Avalanche Foundation is pursuing up to $1 billion in funding to launch dedicated treasury companies holding its token.
According to CryptoSlate data, AVAX rose nearly 9% in the past 24 hours to reach $29, its strongest price level since February.
The token’s performance outpaced the broader top-20 crypto assets, which advanced by an average of 3% over the same period. Notably, the price increase also placed it among the top 10 on CryptoSlate’s Biggest Gainers list for Sept. 11.
This surge reflects broader momentum within the Avalanche ecosystem.
DeFiLlama data shows that decentralized exchanges on the network processed almost $900 million in trading volume in the past day, the highest figure since March and the sixth-largest among all blockchain networks.
At the same time, tokenized real-world assets like BlackRock’s BUIDL deployed on Avalanche now exceed $450 million. According to RWA.xyz data, this reflects a 139% increase in the last month.
AVAX treasury company
This development comes as the Avalanche Foundation is reportedly in advanced talks to establish at least two digital asset treasury companies (DATCOs) focused on the AVAX token.
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According to a Financial Times report, the first deal involves raising as much as $500 million through a private investment in a Nasdaq-traded company. Hivemind Capital is leading the effort, which has advisory support from SkyBridge Capital founder Anthony Scaramucci and could close before the end of the month.
The second deal, structured through a special purpose acquisition vehicle led by Dragonfly Capital, aims to raise another $500 million and is expected to conclude in October.
The report stated that the proceeds from both efforts would be directed toward purchasing AVAX tokens at discounted prices, effectively seeding the treasury companies and strengthening the token’s market base.
Avalanche Foundation’s initiative follows a growing trend of DATCO launches across the industry.
According to Strategic ETH data, Ethereum-focused treasury companies formed earlier this year have already accumulated more than 4.9 million ETH worth $21.7 billion. Similarly, CoinGecko data shows Solana DATCOs have acquired over 4.4 million SOL valued at roughly $992 million.
These treasury acquisitions have helped boost token valuations and reinforced institutional demand for digital assets. So, if Avalanche successfully finalizes its fundraising plans, the strategy could amplify interest in AVAX and extend its latest price rally.