Avalanche Treasury Strategy Depth Analysis: $1 Billion Get on Board and the Rise of the RWA Ecosystem

In September 2025, the Avalanche ecosystem attracted attention in the market through the treasury strategy of a listed company. The former agricultural technology company AGRI was renamed AVAX One and plans to raise $550 million for the acquisition of AVAX tokens, along with another treasury company in preparation, with a total scale expected to exceed $1 billion. Although the treasury model faces sustainability doubts, the performance of the Avalanche on-chain ecosystem is impressive, with a 169.9% rise in daily average transaction volume in the second quarter, and the market capitalization of tokenized real assets exceeding $450 million, with a monthly growth rate of 139%, marking the institutionalization process of the crypto market entering a new stage.

Crypto Market Narrative Shift: From Price Chasing to Institutional Competition

In the past year, the core narrative of the crypto market has undergone profound changes, shifting from merely chasing asset prices to a institutional competition centered around "capital on-chain, asset tokenization, and compliant funds entry." Traditional financial processes and rules are gradually being embedded into the public chain ecosystem. In this competition, the public chains that can more quickly connect compliant funds, real assets, and industry traffic will occupy a more favorable ecological position in the next cycle.

Avalanche has become an important player in this transformation thanks to its proactive strategic layout. The network continuously optimizes performance and developer experience through the Octane upgrade and subnet expansion, while introducing public company treasuries with AVAX as the core exposure and collaborating with RWA to bridge Wall Street’s capital and regulations to on-chain through tokenization. This dual-track approach is reshaping the competitive landscape of public chains.

AVAX Treasury Launch: Over $1 Billion in Funds Entering

In September 2025, the small publicly listed company AgriFORCE Growing Systems, which originally engaged in agricultural technology and then transformed into Bitcoin mining, announced its name change to "AVAX One" and plans to raise approximately $550 million from external investors for the acquisition of AVAX tokens worth over $700 million. This initiative marks the official implementation phase of the Avalanche treasury strategy.

This financing round was led by Hivemind Capital, with participation from over 50 institutions and cryptocurrency-native investors, including well-known firms like ParaFi, Galaxy Digital, Digital Currency Group, mainstream CEX, and Cypher Capital. So far, AGRI has successfully raised about 300 million dollars in PIPE funding, demonstrating institutional investors' confidence in the Avalanche ecosystem.

What is even more noteworthy is that the lead investor Hivemind Capital founder Matt Zhang is expected to serve as the chairman of the company, while SkyBridge Capital founder Anthony Scaramucci will lead the advisory board of AGRI. The board will also include several well-known figures from the financial industry, such as Brett Tejpaul, head of Coinbase Institutional. This combination of traditional financial elites and crypto-native teams provides professional endorsement for the treasury model.

In addition to AGRI, the Avalanche Foundation is promoting the establishment of another publicly listed company specializing in holding AVAX Tokens, expected to be completed next month. Two rounds of financing totaling approximately $1 billion will be used to purchase AVAX Tokens from the Avalanche Foundation at a discounted price and to establish a crypto treasury company in the United States, strengthening the market foundation of AVAX.

Controversy Over the Sustainability of Treasury Strategies

Despite the fact that the AVAX treasury strategy has introduced long-term funding and real asset backing to the ecosystem, there are significant divergences in the market regarding the sustainability of this model. AGRI surged 134% during intraday trading on the first trading day following the announcement of its transformation, ending the day with a rise of 142.98%. However, the stock price continued to decline thereafter, falling from $5.73 to $3.52 as of September 26, reflecting the transience of market enthusiasm.

K33 Research reported in September that currently about a quarter of publicly listed companies holding Bitcoin have a stock market capitalization that is lower than the book value of the crypto assets they hold. K33 analyst Vetle Lunde emphasized that this "market capitalization being lower than assets" situation means that companies issuing new shares to raise funds for purchasing coins is equivalent to selling equity at a discount, which could be detrimental in the long run. Due to frequent issuance diluting the rights of existing shareholders, combined with the potential risks of having assets highly concentrated in specific coins, the subsequent financing capability of treasury companies is often limited.

Data shows that as of September, the average premium multiple of cryptocurrency treasury company stock prices relative to their held assets has decreased from 3.76 in April to 2.8, with most small and medium-sized companies falling into a discount range, while only leading firms like MicroStrategy continue to maintain premium trading. Even the industry benchmark MicroStrategy has seen its stock price premium over the company's net assets held in Bitcoin drop to about 1.26 times, reaching a new low since March 2024, indicating that the market's perception of the "public company hoarding coins" model is becoming more rational.

Industry analysts remind investors on social media to be vigilant about some "buying coins and speculating on stocks" financial stories, as their essence is to exploit the heat of the crypto market for arbitrage in the traditional market, which has high reflexivity and speculative attributes. Once the crypto market reverses, the lack of fundamental support for the company may lead to a simultaneous decline in stock prices and token prices.

Avalanche Ecosystem Acceleration: DeFi and RWA Lead the Way

Despite the controversy surrounding treasury strategies, the Avalanche blockchain ecosystem has shown significant rise in the past six months. In the second quarter of 2025, Avalanche completed the Octane upgrade, greatly optimizing network performance and costs, with the average transaction fee on the C-Chain decreasing by approximately 43% quarter-on-quarter. The direct effect of the upgrade is a surge in on-chain activity: the average number of daily transactions increased to about 10.1 million, a rise of 169.9% compared to the previous quarter; the average number of active addresses exceeded 519,000, with a quarter-on-quarter increase of 210%.

Entering the third quarter, on-chain transactions and DeFi activities on Avalanche further increased. In early September 2025, the daily trading volume of decentralized exchanges on Avalanche approached 900 million USD, setting a new high since March and ranking sixth among all blockchain networks. According to DeFiLlama data, on September 24, the daily trading volume of Avalanche DEX surged to 1.17 billion USD, demonstrating strong growth momentum.

In the field of real asset tokenization, Avalanche is rapidly becoming an important platform. Data from September shows that the market capitalization of tokenized physical assets deployed on the Avalanche network has exceeded $450 million, with a rise of 139% in just one month. Among the most notable is the dollar digital liquidity fund BUIDL under global asset management giant BlackRock, as well as SkyBridge's tokenization of a $300 million stake of its hedge fund on Avalanche through the Tokeny platform.

Avalanche has also made progress in the field of compliant stablecoins. The first state government-supported stablecoin, Frontier Stable Token, launched by Wyoming, has chosen to issue on seven blockchains including Avalanche in August. In terms of on-chain transactions and settlements, payment giant Visa announced in July that it would integrate Avalanche and Stellar networks into its cross-border stablecoin settlement platform, allowing PayPal's USD stablecoin PYUSD, Global Dollar, and Circle's Euro stablecoin EURC to be cleared through Avalanche.

Institutional Capital Inflow and Investment Outlook

With the prosperity of the ecosystem, institutional funds are closely following Avalanche. Several asset management firms have applied to launch trading products based on Avalanche: the world's largest crypto asset management company Grayscale and Bitwise have recently submitted application documents for a spot Avalanche ETF to the US SEC; VanEck also applied for an Avalanche ETF to the SEC in March this year, demonstrating the recognition of traditional financial institutions for the long-term value of Avalanche.

From an investment perspective, the Avalanche ecosystem currently presents a multi-layered opportunity structure. At the level of treasury companies, investors need to carefully assess their capital structure, the professionalism of the management team, and asset allocation strategies, avoiding blindly chasing conceptual hype. At the level of ecological projects, RWA, DeFi, and infrastructure projects provide more direct value capture opportunities, but attention needs to be paid to the project's technical implementation and compliance progress.

For short-term traders, it is essential to follow the changes in on-chain data of Avalanche, especially indicators such as DEX trading volume, active addresses, and Gas consumption, as these often reflect changes in market sentiment in advance. For long-term investors, the focus should be on the actual progress of Avalanche in the institutionalization process, including the depth of cooperation with traditional financial institutions, the scale growth of RWA assets, and the expansion speed of subnet ecosystems.

Conclusion

The treasury strategy of Avalanche and its ecological development showcase the complex picture of the institutionalization process in the crypto industry. As an innovative attempt to connect traditional capital with on-chain applications, the long-term value of treasury companies still needs to be tested by the market, but the substantial progress made by Avalanche in RWA tokenization, institutional collaboration, and on-chain ecological construction cannot be overlooked. In this critical period of transition from the wild growth of the crypto market to regulated development, this mindset of "bridging traditional capital with on-chain applications" may be more worth following than short-term price fluctuations.

Disclaimer: This article is for informational purposes only and does not constitute any investment advice. The crypto market is highly volatile, and investors should make cautious decisions.