tl;dr
Avalanche Treasury Co. announced a $1 billion AVAX purchase plan, merging with a SPAC and aiming for a Nasdaq listing. The move sent AVAX prices soaring, attracting major institutional backing and sparking debates over its financial metrics.
**Avalanche Treasury Co. Announces $1 Billion AVAX Purchase Plan, Sending AVAX Price Higher**
The price of AVAX, the native token of the Avalanche blockchain, surged following the announcement of a groundbreaking venture by Avalanche Treasury Co., a newly formed company poised to become the second "treasury company" focused on the Avalanche ecosystem. The firm plans to acquire over $1 billion worth of AVAX tokens, sparking a rally that saw the price hit an intraday high of $31.32 before settling slightly.
**Merger with SPAC and Nasdaq Listing**
Avalanche Treasury Co. revealed on Wednesday that it will merge with Mountain Lake Acquisition Corp., a special purpose acquisition company (SPAC), in a deal valued at $675 million. The merged entity aims to list on the Nasdaq in the first quarter of 2026 under the ticker symbol **AVAT**, pending regulatory and shareholder approvals. This move marks a significant milestone for the Avalanche blockchain, which has seen growing institutional interest.
Emin Gün Sirer, founder and CEO of Ava Labs, the development firm behind Avalanche, will serve as an adviser to the company. The partnership underscores the growing synergy between Avalanche’s infrastructure and financial innovation.
**$1 Billion AVAX Holdings and Strategic Vision**
Avalanche Treasury Co. has secured an "exclusive relationship" with the Avalanche Foundation, which had planned to sell millions of AVAX tokens at a discounted price to treasury companies. The firm aims to hold over $1 billion in AVAX after its public offering, with an initial capital raise expected to fund approximately $460 million in treasury assets.
The company’s strategy extends beyond passive token holding. Bart Smith, former CEO of crypto market maker Susquehanna Crypto, will lead the firm as CEO. Smith emphasized that Avalanche Treasury Co. will "generate revenue beyond passive accumulation" by deploying funds into targeted protocol investments, helping enterprises tokenize real-world assets and stablecoins, and establishing its own validator infrastructure.
**Market Reaction and Investor Backing**
The announcement sent AVAX soaring, reflecting investor confidence in the Avalanche ecosystem. However, the token has since cooled, remaining up 2.3% over the past 24 hours. The merger has attracted backing from prominent crypto-focused firms, including Dragonfly, VanEck, FalconX, Monarq, Galaxy Digital, Pantera Capital, CoinFund, and Kraken.
**Discount Offer and Controversial Metrics**
Avalanche Treasury Co. plans to offer its initial AVAX purchases at a discount to the market price, with 18-month priority access to Avalanche Foundation sales for U.S. digital asset treasury companies. The firm’s net asset value (mNAV) multiple of 0.77 is marketed as a 23% discount compared to direct AVAX purchases. However, analysts at NYDIG have criticized mNAV as a misleading metric that fails to accurately reflect a company’s financial health.
**Broader Context: Crypto-Focused Treasury Companies**
Avalanche Treasury Co. joins a wave of companies pivoting to hold and invest in cryptocurrencies. Earlier this month, AgriFORCE Growing Systems announced it would rebrand as AVAX One and purchase $700 million worth of AVAX. These developments highlight the increasing institutional interest in blockchain assets as a hedge against traditional markets.
**Looking Ahead**
As Avalanche Treasury Co. prepares for its Nasdaq debut, the move could further solidify Avalanche’s position as a leading blockchain for institutional adoption. With a focus on active on-chain participation and strategic investments, the company aims to provide value beyond simple token holdings. However, the success of this venture will depend on navigating regulatory landscapes and proving the long-term viability of its model in a volatile market.
For now, the AVAX price surge signals optimism about the future of the Avalanche ecosystem—and the growing role of treasury companies in shaping the crypto landscape.