The Avalanche Foundation is planning to raise $1 billion to establish two crypto treasury companies holding millions of AVAX tokens, with these tokens to be bought at a discounted rate, as part of a broader strategy to boost institutional adoption.

One of these vehicles, led by Hivemind Capital and advised by Anthony Scaramucci, aims to raise up to $500 million via a Nasdaq-listed entity, while a second, sponsored by Dragonfly Capital, plans a $500 million SPAC; both deals are expected to close within weeks.

These treasury initiatives are part of a trend where publicly-listed companies are raising capital to hold crypto assets on their balance sheets, which has contributed to increased demand for digital assets this year.

The deals could influence AVAX's price by reducing circulating supply through locked or staked tokens and signaling structured demand, although their off-exchange execution might limit immediate impact on spot trading.

Recent industry momentum and positive technical signals have driven AVAX's price nearly 10% higher to around $29.82 on September 11, 2025, with increased trading volume over 73%.

Technical analysis indicates bullish signals such as the MACD moving upward, the 9 EMA above the 20 EMA, and rising RSI, suggesting potential for further price increases.

AVAX benefits from ongoing ETF applications before the SEC and positive market conditions, which could push its price toward the $40–$45 range, though regulatory and sentiment factors remain influential.

AVAX's correlation with Bitcoin is currently high at 0.80, implying its price trajectory is likely to follow Bitcoin's bullish trend if the broader market remains positive.

However, if profit-taking occurs at current levels, AVAX could pull back to around $27 or even $25.86, which would undermine the recent bullish momentum.

Launched in 2020, Avalanche is a scalable blockchain platform with three core chains and a unique Avalanche Consensus Mechanism, designed for fast, low-cost transactions, and is positioning itself as a platform for institutional finance.

Partnerships like the one with Toyota for blockchain mobility networks highlight Avalanche's focus on institutional adoption, even as AVAX has underperformed compared to competitors like Ethereum and Solana.

The potential success of Avalanche’s treasury and fundraising efforts could extend its price rally and increase its appeal, especially as the platform continues to attract significant total value locked (TVL) and top-tier institutional interest.