AVAX recovers after AgriFORCE transformation into treasury company

AgriFORCE announced plans to transform into Avax One, a digital asset treasury company. Following the news, AVAX tokens bounced from their recent lows of $30. 

AgriFORCE announced plans to transform into an AVAX digital treasury company (DAT). Following the news, AVAX tokens broke their recent slide, bouncing from lows of around $30. 

The announcement of AgriFORCE follows the previous plans of the Avalanche Foundation to secure discounted AVAX tokens for treasury entities. 

Following the news, AVAX recovered to $31.79, compensating some of the losses during the latest altcoin downturn.

Avax One plans to raise $550M

AgriFORCE announced its plans to rebrand into Avax One ahead of its fundraising efforts. The rebranding arrives after the company’s five-year history led to a long slide of the stock price. 

AGRI traded at an all-time low of $2.41, rising to a peak of $10 following the treasury announcement. Later, the stock retreated to $7.14. The company attempted to develop clean food solutions, while also taking up Bitcoin mining on the side. 

As Avax One, the new entity may be among the first to gauge institutional and retail interest for AVAX. The tokens will not come from the open market, but from the reserves of the Avalanche Foundation. 

“The architecture of financial markets is changing, and programmable blockchains like Avalanche are the new foundation,” said Jolie Kahn, CEO of Avax One.

“For the first time, our company provides public market investors with a professionally-managed vehicle to invest directly in this transformation. Our mission is to maximize our ownership of this foundational technology, AVAX, on a per-share basis, delivering direct value to our shareholders as this new economy grows,” the executive continued.

The company has also appointed Matt Zhang, Founder of Hivemind Capital, to its board. Hivemind Capital is also helping the Avalanche Foundation with its $1B fundraising efforts, which will use up a significant part of the stored AVAX.

The company will have a strategic advisory board, led by Anthony Scaramucci, Founder of SkyBridge Capital, and Brett Tejpaul, Head of Coinbase Institutional, with other advisors to be revealed soon.

Avalanche aims to tap the next wave of DeFi, including tokenized real-world assets (RWA).

AgriFORCE to boost holdings to $700M in the long term

In the long term, the company aims to own more than $700M worth of AVAX, becoming a foundational partner in a growing ecosystem. The initial raise strategy will include a $300M PIPE facility, subject ot shareholder approval. An additional $250M may be raised in the near future through equity-linked instruments. 

The recent moves by altcoin treasury companies show the DAT narrative is not yet depleted. However, altcoin buying may not meet the same retail demand for shares or other instruments. 

AVAX has been fighting to regain its exposure as a leading network. The chain carries $2.13B in value locked, led by a slow DeFi recovery. Avalanche C-Chain also has varied flows of value, mostly from bridging with Ethereum and Bitcoin.