Avalanche’s $1B DAT Plan Could Rewrite the Playbook for Token Buybacks

Core Insights - Avalanche Foundation is planning to raise $1 billion to establish two separate AVAX treasury entities [1][2] - The first deal aims for a $500 million raise through private investment, led by Hivemind Capital [3] - The second deal involves a $500 million SPAC initiated by Dragonfly Capital, focusing on acquiring AVAX tokens at a discounted price [4] Avalanche Treasuries - The Avalanche Foundation is working on creating digital asset treasury companies, including a new crypto treasury and converting an existing company into a treasury firm [2] - The foundation is expected to close deals in the coming weeks as part of this initiative [2] Market Context - The digital asset sector has seen a rise in treasury strategies, with examples like Japan's Metaplanet, which successfully pivoted to Bitcoin [5] - Other firms adopting treasury strategies for Bitcoin, Solana, and Worldcoin have not experienced the same success, with many seeing declines in share value [6] Current Performance - AVAX is currently trading at $28.84, reflecting an 8% increase in the past 24 hours, with a market cap of $12.17 billion [7] - Despite the overall decline in crypto treasury stocks, the accumulation of crypto through various strategies is positively impacting the value of the AVAX token [8]