AgriFORCE Growing Systems stock surged over 200% at the opening on Monday after the agricultural technology company announced its transition to an AVAX digital asset treasury model.
The company will be renamed AVAX One and plans to raise $550 million to create a treasury centered around Avalanche (AVAX). AVAX is the native token of the Avalanche blockchain.
According to a press release on Monday, the company's goal is to accumulate over $700 million in AVAX tokens. As part of its long-term strategy, the company also plans to acquire and integrate profitable fintech companies into the Avalanche network.
The fundraising plan includes a $300 million public equity private investment in public equity (PIPE) deal, which requires shareholder approval, and plans to raise an additional $250 million through equity-linked instruments.
Hivemind Capital is leading the fundraising, with over 50 supporters participating, including institutional companies and crypto-native players such as ParaFi, Galaxy Digital, Kraken, Big Brain Holdings, and FalconX.
The company's advisory board is led by Anthony Scaramucci, founder of SkyBridge Capital and a well-known crypto investor, along with Brett Tejpaul, head of Coinbase Institutional.
Matt Zhang, founder of Hivemind Capital and chairman of the company's board nomination committee, stated in an interview with Cointelegraph that Avalanche is a "very careful choice." He mentioned that the team had rejected "four other blockchain foundations" and pointed out that "the only reason we chose Avalanche is its continued focus on on-chain finance and world-class partnerships."
Zhang also added that staking, which involves locking up cryptocurrency to secure the blockchain and earn rewards, played a key role in the choice of Avalanche.
Zhang said, "According to our model, the income generated from staking allows the company to be profitable from the very beginning."
CoinGecko data shows that the price of AVAX at the time of writing is $31.76. At this price, a $700 million investment corresponds to approximately 22 million AVAX tokens. Current validators earn an annualized yield of about 6.7% through staking, which could yield approximately $46.9 million in rewards annually.
Less than two weeks before this announcement, the Avalanche Foundation had just announced plans to raise $1 billion for digital asset treasury companies and AVAX accumulation projects.
AGRI stock rose from a closing price of $2.41 on Friday to $7.30 at the opening on Monday, with Yahoo Finance data showing a pullback during the day, ultimately closing at $5.73 on Nasdaq, a gain of 137%.
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 focus on the DeFi sector.
Avalanche has performed exceptionally well in the Web3 gaming space. In June, the chain saw daily transaction volumes exceed 1 million twice in one week, primarily driven by the blockchain version of the popular game MapleStory Universe.
Investor interest in AVAX continues to grow. In February, Swedish asset management company Vitune launched a crypto exchange-traded product (ETP) that allows Finnish investors to invest in AVAX and Cardano (ADA).
The following month, global investment firm VanEck submitted an application to the SEC to launch an Avalanche exchange-traded fund (ETF). In August, Grayscale Investments sought to convert its existing Avalanche trust into an ETF.
As of the end of August, Avalanche had the highest trading growth rate among all blockchains, with a weekly increase of over 66% and transaction volumes exceeding 11.9 million.
The number of users surged following the U.S. Department of Commerce's announcement that it would release actual Gross Domestic Product (GDP) data on multiple blockchains, including Avalanche.
Although AVAX is still significantly below its all-time high of $144.96 set in November 2021, CoinGecko data shows that the token has risen approximately 24% in the past two weeks.
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Original article: “AgriFORCE Stock Soars Due to Strategic Shift to Build AVAX Treasury”
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