Shares of Agriforce Growing Systems grew more than 200% on Monday open after the Agricultural technology company was announced by a pivot in an Avax Digital Asset Treasury model.
The company will rebrand as Avax One and aims to raise $ 550 million to generate a treasury centered on Avalanche (Avax), the native token of the avalanche blockchain.
According to a Monday press ReleaseThe company’s goal is to accumulate more than $ 700 million in Avax tokens. As a long-term approach, it also plans to obtain and include revenue that forms fintech businesses on the avalanche network.
The funding strategy includes $ 300 million private investment in the public equity (pipe) deal, subject to shareholder approval, and plans to raise another $ 250 million through instruments associated with equity.
The Hivemind Capital led the increase, accompanied by more than 50 supporters from institutional companies to native players, including Parafi, Galaxy Digital, Kraken, Big Brain Holdings, and Falconx.
The company’s advisory board will be led by Anthony Scaramucci, founder of the Skybridge Capital and a prominent crypto investor, and Brett Tejpaul, the head of the Coinbase institution.
Matt Zhang, founder of the Hivemind Capital and appointed chairman of the company’s board, told Cointelegraph that Avalanche was “a deliberate choice.” He said his team turned away “four other blockchain foundations, and that” they chose the avalanche for one reason: the relentless focus on on-chain finance and partnerships worldwide. “
Zhang also mentioned that the staking, the gesture of Crypto -locking To secure a blockchain and earn yield in the process, it plays an important role in the avalanche selection.
“Staking is what makes us a real, operating business from the day one, not just a passive ark. It’s a critical part of our approach. Based on our model, the income generated from staking makes the business benefit from the beginning,” Zhang said.
AVAX trades at $ 31.76 at the time of writing, According to In coingecko. At that price, a $ 700 million investment will reach nearly 22 million Avax tokens. With validators currently earning an annual percentage (APY) of about 6.7% from staking, the position can generate nearly $ 46.9 million in annual rewards.
Announcement will come less than two weeks after the Avalanche Foundation expressed Plans to raise $ 1 billion For digital asset treasury companies and Avax accumulation initiatives.
Agri’s stock climbed from a $ 2.41 near Friday to open $ 7.30 on Monday, according to Data from Yahoo FinanceRetracing to end the day of trade in Nasdaq at $ 5.73, rising by 137%.
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From playing to ETFs, avalanches recorded fresh growth signals
The avalanche is an Open-Source blockchain Launched in 2020 by Cornell University Professor Emin Gün Sirer. The network is designed to support smart contracts and decentralized applications (DAPPS), with a strong focus on the DeFI.
One place where traction the avalanche is to play web3. In June, the chain exceeded 1 million -day -day transactions twice During the week, mainly driven by activity from the Maplestory Universe, a blockchain -based game version.
The investor’s interest in Avax is also building. In February, Sweden -based asset manager Vitune introduced a product exchanged Crypto Exchange (ETP), exposing Finnish investors to the Avax and Cardano (Ada).
The following month, global investment company Vaneck filed on the SEC at Launch an Avalanche Exchange-Traded Fund (ETF). In August, Grayscale investments seek to convert its have Trust in avalanche in an ETF.
By the end of August, avalanche Led all blockchains With the growth of the transaction, it increases by more than 66% a week and recording more than 11.9 million transactions.
User strengthening came to the heel of an announcement that the United States Commerce Department Plan to post real Gross Domestic Product (GDP) data to some blockchains, including avalanche.
Although Avax remains far under the full time high of $ 144.96 set in November 2021, the data from Co ringecko Showing the token has climbed around 24% in the past two weeks.
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