The function of within multi-chain finance can be redefined by treasury strategies, mirroring the effect these strategies had on Ethereum and Solana.
Avalanche has abruptly become the focus of a billion-dollar purchasing initiative planned by publicly traded digital asset treasury entities.
It was stated by AgriFORCE that it will undergo a name change to “AVAX One” and gather approximately million worth of AVAX. Concurrently, a million SPAC arrangement was revealed by Avalanche Treasury Co. , which funds approximately million in financial statement holdings and establishes an objective to exceed billion in following its public debut.
It was declared by AgriFORCE that a rebranding to “AVAX One” will be undertaken by it and roughly million of will be amassed. Simultaneously, a million SPAC transaction was unveiled by Avalanche Treasury Co. , which supplies roughly million in balance sheet assets and sets a goal for billion in to be surpassed after its listing on the exchange.
The position of AVAX within multi-chain finance can be fundamentally altered by these undertakings, mirroring what was accomplished with Ethereum (ETH) and Solana (SOL).
Market Impact
The preliminary market response was varied but conspicuous. On September 22, as the intention of AgriFORCE made the news, AVAX experienced a drop to $29.41 in early trading during a wide-ranging move away from risk.
Nevertheless, the asset was reversed to end at $33.49, representing an increase of approximately 14% for the day. This upward momentum was extended to $36.16 in the initial hours of September 23, which marked its first price level above $36 since January 31.
The resilience of AVAX was in opposition to a $30 billion reduction in the altcoin market capitalization on the identical day, which indicated that the disclosure bolstered the outcome.
In the interim, the stock of AgriFORCE (AGRI) surged by over 200% in value intra-day on September 22, although a correction of 35% has been seen since that time, and it was being traded at $3.74 as of the time this article went to print.
By comparison, a milder 2.4% increase was observed following the AVAT announcement on October 1, which came after the altcoin sector accrued approximately $140 billion in market capitalization. In this instance, it is more difficult to ascribe the price fluctuation solely to the treasury strategies.
Growing With DATs
The momentum for acquiring AVAX reflects the wider 2025 growth of DAT corporations, a phenomenon that initially was established through the purchase of alternative digital currencies such as Ethereum and Solana.
In late May, it was declared by the sports betting technology company SharpLink that approximately $425 million would be secured by it, with the resulting funds to be changed into ETH as part of a consulting partnership established with Consensys co-founder Joseph Lubin.
A purchase of 1,000 ETH was executed by BTCS soon after in early June, and an ETH treasury initiative was launched by BitMine by early July.
As the year advanced, the acquisitions by BitMine and SharpLink were quickened, resulting in their ETH holdings being increased to 2.65 million ETH and 838,730 ETH, respectively, as of October 2.
A sorely required recovery was seen in Ethereum’s valuation, and it surpassed other assets during the entirety of the summer season. ETH appreciated by almost 50% in July exclusively, subsequently reaching a novel all-time peak of $4,956.78 on August 24, which was nearly four years subsequent to its preceding price record.
In addition, a sharp increase in capital was observed in U.S.-listed spot Ethereum exchange-traded funds (ETFs).
As per the figures from Farside Investors, the funds experienced trouble in surpassing the $3 billion level in total inflows, yet the benchmark was exceeded two days following the declaration by SharpLink.
Ethereum ETFs then compensated for the time it took to capture massive inflows, and skyrocketed to nearly $14 billion in cumulative flows by Sept. 19, a 342% growth.
The delay in attracting substantial capital was subsequently offset by Ethereum ETFs, and a meteoric rise to almost billion in total inflows had been seen by September 19, which equated to a expansion.
The time lost in securing considerable investments was later recovered by Ethereum ETFs, and an astronomical increase to nearly billion in aggregate deposits was recorded by September 19, which represented a surge.
The period missed in obtaining significant capital was subsequently regained by Ethereum ETFs, and an enormous ascent to almost billion in total contributions had been tallied by September 19, an achievement that equated to a spike.
The gap created in acquiring substantial funds was later compensated for by Ethereum ETFs, and a massive increase to nearly billion in cumulative investments had been calculated by September 19, which represented a sharp rise.
The deficiency in drawing in considerable funds was ultimately remedied by Ethereum ETFs, and a gigantic climb to nearly $14 billion in aggregate deposits was logged by September 19, a feat which represented a 342% pronounced elevation.
Notwithstanding, the $200 million mark in total deposits was exceeded by SSK for the initial instance on September 11, during the time frame of late August and mid-September, a period marked by SOL’s robust price movement.
By Sept. 26, SSK added another $100 million to its cumulative inflows, with data from Farside Investors revealing the fund crossed the $300 million mark.
By September 26, another $100 million was added to the aggregate deposits of SSK, with data from Farside Investors revealing that the threshold of $300 million was surpassed by the fund.
The Next Phase After Buy-and-Hold
A more integrated framework than a straightforward “acquire and retain” approach is being promoted by AVAT. The organization asserted that an initial AVAX acquisition at a reduced rate compared to the market, and an 18-month privileged period for Avalanche Foundation distributions to U.S. Treasury entities, was secured by it.
It also provided admittance at roughly a 23% reduction compared to unmediated token access (mNAV), and a directive was given to invest resources into Avalanche’s infrastructure.
The directive incorporates protocol funding that spurs transactions, corporate collaborations for tangible assets, stable digital currencies, and remittances, and validation assistance for institutional base-layer rollouts.
“We created Avalanche Treasury Co. to offer something we believe will be more valuable than passive exposure.”
CEO Bart Smith said:
The initiative was hailed by Ava Labs originator Emin Gün Sirer as “demonstrating the increasing complexity and impetus influencing the trajectory of Avalanche.”
The change in direction was presented in wider context by Anthony Scaramucci, who will be in charge of the advisory council, concerning the AgriFORCE aspect:
“The tokenization of assets is the single biggest theme for the next decade of finance.”
The strategic aspiration of constructing the “Berkshire Hathaway of the on-chain financial system,” which offers Wall Street a scalable route into institutional-level blockchain frameworks, was also mentioned by Hivemind’s Matt Zhang.
The Future of Retail
For ordinary investors, two prospective avenues are made available by these frameworks, which are subsequently succeeded by two classifications of hazard.
The initial one is secondary ownership stakes in the treasury firms themselves, where, for instance, access is publicized by AVAT at an implicit reduction compared to its fundamental token holdings.
That “subsequent reduction” can be considered appealing but is not assured, and may be altered by market disposition, ease of trading, and the frequency of fresh offerings.
The subsequent avenue is not direct, as DATs concentrate funds in AVAX and have the potential to intensify price determination, enhance liquidity across both immediate and futures platforms, and hasten the construction of on-chain programs that generate genuine transactional necessity.
In addition, forthcoming ETF investments can be amplified by it, since applications for spot Avalanche ETFs from Bitwise, Grayscale, and VanEck are currently pending authorization from the SEC.
Notwithstanding, the identical PIPE mechanisms that provide funds for treasuries can be detrimental to existing stock owners once resale opportunities become available.
A current examination of Bitcoin treasury entities utilizing PIPEs discloses a repeated tendency where equity shifts toward lower issuance costs as vesting dates get nearer. In multiple instances, most of the preliminary ascent was eliminated by the adjustments, and at various moments, trading beneath the PIPE valuation was seen.
An “excessive supply” is generated by this situation, which can exert strain on both the company shares and, secondarily, the original token when organizations are compelled to handle fluid assets during moments of value decline.
Should the AVAX holding entities carry out their plans, the ramifications will be stretched past the most prominent rate.
A billion-dollar balance sheet buyer can legitimize AVAX alongside ETH and SOL in institutional policy frameworks, broaden the universe of allocators beyond crypto-native funds, and speed the emergence of AVAX-linked structured products.
A $1 billion balance sheet acquirer can establish acceptance for AVAX alongside ETH and SOL within official financial policy frameworks, expand the range of capital allocators past crypto-focused vehicles, and accelerate the creation of AVAX-related sophisticated investment products.
