DEFA14A: AgriFORCE Subsidiary AVAX One Unveils Digital Asset Strategy

AgriFORCE's strategic advisor and Hivemind's Matt Zhang detail AVAX One's vision to become the 'Berkshire Hathaway of the on-chain financial economy' through active digital asset management and fintech acquisitions.

Summary

• AgriFORCE Growing Systems, Ltd. filed definitive additional proxy materials on October 23, 2025, including transcripts from two recent podcast interviews.
• Matt Zhang, involved with AVAX One, discussed the digital asset treasury (DAT) market, noting a 'bubble burst' but emphasizing the early stage of the movement.
• Zhang believes Fortune 500 companies will adopt digital asset treasuries within five years for diversification, similar to traditional currency and gold diversification.
• AVAX One, led by Hivemind and in collaboration with the Avalanche Foundation, aims to differentiate itself from other DATs and ETFs by actively managing assets and building businesses.
• The strategy for AVAX One includes acquiring cash-flowing, undervalued small to medium fintech businesses (with 3-5x PE, real revenue, and profitability) and integrating them into the Avalanche ecosystem.
• AVAX One intends to implement a 'one-way accumulating strategy' for AVAX tokens, never selling what it acquires, effectively making the token supply deflationary.
• Brett Tejpaul, a strategic advisor for AVAX One, highlighted the importance of credible leadership and Avalanche's technology, including subnets, privacy, customization, and Ethereum compatibility, for institutional adoption.
• Tejpaul views DATs as an 'easy on-ramp' for investors into digital assets, similar to ETFs, but with the potential for active management to generate additional value.
• The company filed a definitive proxy statement on October 2, 2025, for its 2025 Annual Meeting, with details on participants available on page 8.

Sentiment

Score: 8

Explanation: The filing conveys a highly optimistic and strategic outlook for AVAX One and the broader digital asset treasury market, emphasizing long-term value creation, institutional adoption, and innovative business models. While acknowledging short-term market challenges, the overall tone is confident and forward-looking.

Positives

• Strong strategic vision for AVAX One to become a leading digital asset treasury company, likened to 'Berkshire Hathaway of the on-chain financial economy'.
• Focus on active management, including timing investments and building businesses, to generate value beyond simple token accumulation.
• Plan to acquire profitable fintech businesses (3-5x PE, real revenue) to drive adoption and value within the Avalanche ecosystem.
• Commitment to a 'one-way accumulating strategy' for AVAX tokens, aiming to create a deflationary supply and enhance per-token value.
• Leveraging Avalanche's technology (subnets, privacy, customization, Ethereum compatibility) which is seen as crucial for institutional capital entry.
• Involvement of experienced professionals like Matt Zhang (Hivemind) and Brett Tejpaul (strategic advisor) with strong TradFi and crypto backgrounds.
• Recognition of the long-term potential for digital asset treasuries, with an expectation that most Fortune 500 companies will adopt them within five years.

Negatives

• Acknowledgement of a 'bubble burst' in the digital asset treasury space and the presence of 'low quality projects' focused on transactional money rather than long-term value.
• MicroStrategy's stock price underperformance against Bitcoin in the current year, raising concerns for some investors (though countered by Matt Zhang's long-term view).
• The complexity of understanding blockchain differentiation (e.g., subnets, privacy) may hinder broader investor adoption initially.
• The success of AVAX One's strategy relies heavily on execution ability in identifying and integrating suitable fintech acquisitions and managing digital assets effectively.

Risks

• Market volatility and irrational behaviors in the digital asset space.
• Risk of investing in 'low quality projects' or underlying cryptocurrencies that may not be sustainable.
• Execution risk associated with AVAX One's strategy to acquire and integrate fintech businesses onto the Avalanche ecosystem.
• Challenges in consistently generating a premium above the underlying token's Net Asset Value (NAV).
• Regulatory uncertainties and legal complexities surrounding digital assets and public companies.
• Competition from numerous other digital asset treasury companies and traditional investment vehicles like ETFs.

Future Outlook

Expectation that within five years, most Fortune 500 companies will operate some form of a digital asset treasury, evolving beyond simple buy-and-hold strategies to include active management, staking, and business building. The current period is seen as foundational for institutional-grade blockchain finance.

Management Comments

• "I think there was a bubble, and I think it should be burst it. But I also think what a very early journey of the entire movement." Matt Zhang
• "In five years time you will have the Fortune 500 company or some shape or form a DAT company." Matt Zhang
• "Our goal is were never going to sell the tokens ever for what we have bought. Its accumulating one way strategy." Matt Zhang
• "We want bring AVAX One to be the Berkshire Hathaway of the unchained financial economy." Matt Zhang
• "My criteria is pretty old school—find credible people you trust and do things with them." Brett Tejpaul
• "The subnets, customization, and Ethereum compatibility are the top three things that attracted me [to AVAX]." Brett Tejpaul
• "DATs provide an easy on-ramp for investors." Brett Tejpaul
• "Fast-forward five or ten years, and I think well look back on this period as the moment the foundation for institutional-grade blockchain finance was truly set." Host (paraphrasing Brett's sentiment)

Industry Context

The filing provides a detailed perspective on the evolving digital asset treasury (DAT) market, positioning it as a significant, albeit nascent, sector within the broader digital asset economy. It highlights the shift from simple buy-and-hold strategies to more active, value-generating approaches, drawing parallels with traditional finance (e.g., corporate treasury diversification, Berkshire Hathaway's active management). The emphasis on Avalanche's technology for institutional-grade solutions aligns with the growing trend of traditional financial institutions exploring blockchain for structured products and private networks.

Comparison to Industry Standards

• AVAX One's ambition to be the 'Berkshire Hathaway of the unchained financial economy' sets a high benchmark for active management and value creation beyond a simple index fund.
• The discussion differentiates DATs from passive investment vehicles like S&P 500 index funds and Bitcoin ETFs/ETPs, which primarily track underlying asset values.
• MicroStrategy is cited as a pioneering DAT, with its long-term conviction respected despite recent stock underperformance against Bitcoin.
• Janus Henderson's use of CLOs on-chain with Avalanche is presented as a significant validation of Avalanche's capabilities for tokenizing complex, structured, and illiquid products, comparable to BlackRock's involvement in the crypto space.

Stakeholder Impact

• Shareholders: Potential for long-term value creation through AVAX One's strategic growth and active management in the digital asset space. Required to vote at the 2025 Annual Meeting.
• Digital Asset Investors: Provides insights into the evolving landscape of digital asset investment vehicles and strategies.
• Fintech Companies: Potential acquisition targets for AVAX One, offering opportunities for integration into the Avalanche ecosystem.
• Avalanche Ecosystem: Increased volume, usage, and Total Value Locked (TVL) through AVAX One's activities and acquired businesses.

Next Steps

• AgriFORCE's 2025 Annual Meeting (for which the proxy statement was filed).
• AVAX One's continued execution of its strategy to acquire cash-flowing fintech businesses.
• Further development and adoption of the Avalanche ecosystem for financial services.
• Ongoing efforts by AVAX One to accumulate AVAX tokens as part of its one-way strategy.

Key Dates

Keywords

Digital Asset Treasury, AVAX One, Avalanche, Blockchain, Fintech, Cryptocurrency, Investment Strategy, Corporate Treasury, Hivemind, SEC Filing, Proxy Statement, Asset Management, Deflationary Token, Institutional Adoption