## Avalanche Executes a $1 Billion Strategy Through Institutional Treasury Structures

The Avalanche ecosystem is charting a new course to secure its offerings long-term and attract institutional investors. The Foundation is simultaneously working on two major funding initiatives—each amounting to $500 million—to establish specialized AVAX companies within the regulatory framework of the USA.

### Two-Pillar Model for Institutional Capital Inflow

The first pillar involves a private investment deal with a company already listed on Nasdaq, led by Hivemind Capital Partners. SkyBridge Capital, Anthony Scaramucci's firm, acts as a strategic advisor. This structure allows institutional players to invest in AVAX through traditional equity shares—without dealing with the complexities of decentralized token custody.

The second approach is based on a SPAC structure, supported by Dragonfly Capital. This vehicle also aims for $500 million to build its own AVAX treasury. By directly purchasing tokens from the Foundation's reserves, a controlled supply dynamic is created—and simultaneously, a substantial war chest for future growth.

### Why This $1 Billion Initiative Makes a Difference

The core goal of this initiative is less about quick liquidity and more about a structural transformation. When corporate treasuries buy up large amounts of AVAX and hold them for years, the tokenomics fundamentally change: shifting away from speculative retail trading toward stable institutional capital. This is the same playbook that MicroStrategy popularized with Bitcoin—only here, a blockchain foundation actively implements this model for its native token.

The current AVAX price of around $13.75, with a market cap of $5.92 billion, underscores its potential: with over 430 million tokens in circulation, these capital inflows could have significant effects on supply dynamics.

### Technical Jumps with Avalanche9000

At the same time, the Foundation is stepping on the gas technically. The Avalanche9000 upgrade reduces entry costs for launching a subnet by up to 99.9 percent. The "Etna" part of this upgrade revives an old regulation: validators previously had to stake 2,000 AVAX. This hurdle is now eliminated.

The result: companies can set up their own blockchains with significantly less startup capital. For enterprise-level projects, Avalanche becomes massively more attractive.

### Regional Expansion: MENA as a New Focus

While capital flows through Wall Street channels, practical adoption is expanding in entirely different regions. During Abu Dhabi Finance Week, the Foundation established the Avalanche DLT Foundation within the Abu Dhabi Global Market (ADGM)—a move to establish a foothold in one of the world's leading regulatory jurisdictions for digital assets.

Real use cases are already emerging: LuLu Financial Holdings is working with Avalanche on blockchain-based remittance solutions. With over $19 billion in transfer volume last year, on-chain processing would represent a significant scaling leap for the network. Additionally, Avalanche supports local startups transitioning from the UAE market to the global crypto scene through Hub71.

### Staking ETFs as the Next Frontier

Meanwhile, opportunities for spot ETF products are intensifying on Wall Street. VanEck is refining its application for a spot AVAX ETF with an innovative twist: the fund could stake the held tokens directly via Coinbase, rewarding investors with yields in addition to price appreciation. If regulated, this would massively accelerate institutional investments.

### The Quiet Revolution: Supply Fixation

The most long-term exciting effect lies in supply consolidation. These corporate treasuries are not buying to trade—they buy for years or decades. This changes the entire token's playbook: less circulation, less volatility from retail, more stability from institutional holders.

The Foundation is advancing this through RWA—Real World Assets—integration. Together with platforms like Securitize, they have already brought US Treasury funds onto the blockchain. Combined with this funding strategy, Avalanche positions itself as more than just a protocol—it's a stable ecosystem bridging traditional finance and the decentralized future.

As the industry watches whether the Dragonfly SPAC will close, the question remains: will other Layer-1 blockchains copy this corporate treasury model?