AgriFORCE (AGRI) Stock Skyrockets on AVAX Treasury Pivot
AgriFORCE Stock Rallies on Pivot to Build AVAX Treasury
Shares of AgriFORCE Growing Systems (AGRI) experienced a significant surge, jumping over 200% at the start of trading on Monday. This followed the agricultural technology firm's announcement that it would pivot towards a digital asset treasury model centered on AVAX.
The company plans to rebrand as AVAX One and aims to raise $550 million to establish a treasury focused on Avalanche (AVAX), the native token of the Avalanche blockchain.
According to a press release, AVAX One intends to accumulate over $700 million in AVAX tokens. Their long-term strategy involves acquiring and integrating revenue-generating fintech businesses into the Avalanche network.
Funding Strategy and Key Players
The funding strategy includes a $300 million private investment in public equity (PIPE) deal, contingent on shareholder approval. Additionally, the company plans to raise another $250 million through equity-linked instruments.
Hivemind Capital is spearheading the raise, with participation from over 50 backers, including institutional firms and crypto-native players like ParaFi, Galaxy Digital, Kraken, Big Brain Holdings, and FalconX.
Leadership and Rationale
The company’s advisory board will be led by Anthony Scaramucci, founder of SkyBridge Capital, and Brett Tejpaul, the head of Coinbase Institutional. Matt Zhang, Founder of Hivemind Capital and nominated chairman of the board, emphasized that Avalanche was chosen due to its focus on on-chain finance and partnerships.
Zhang noted that staking plays a crucial role in Avalanche's selection, stating, "Staking is what makes us a real, operating business from day one, not just a passive treasury. It’s a critical part of our strategy. Based on our model, the revenue generated from staking makes the business profitable from the start."
AVAX and Market Impact
At the time of the announcement, AVAX was trading at $31.76. A $700 million investment would equate to roughly 22 million AVAX tokens. With validators earning an APY of about 6.7% from staking, this could generate around $46.9 million in annual rewards.
The announcement follows the Avalanche Foundation's recent plans to raise $1 billion for digital asset treasury companies and AVAX accumulation initiatives.
AGRI stock, which closed at $2.41 on Friday, opened at $7.30 on Monday, eventually settling at $5.73, a 137% increase.
Avalanche's Growing Ecosystem
Avalanche, an open-source blockchain launched in 2020, supports smart contracts and decentralized applications (DApps), primarily focusing on DeFi.
Adoption and Growth Metrics
- Web3 Gaming: Avalanche has seen traction in Web3 gaming, with MapleStory Universe driving significant transaction volume.
- Institutional Interest: Firms like Virtune and VanEck are exploring Avalanche-based investment products, including ETFs.
- Transaction Growth: Avalanche recently led blockchains in transaction growth, driven partly by the US Department of Commerce's plans to post GDP data on the blockchain.
While AVAX remains below its all-time high, it has seen a recent climb of around 24% in the past two weeks.
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