New Avalanche Treasury Company Plans $1B AVAX Buy After SPAC Merger
A newly-formed company called Avalanche Treasury Co. has announced plans to go public in the US early next year and purchase over $1 billion worth of AVAX tokens.
In an announcement, the new entity said that it would merge with the special purpose acquisition company (SPAC) Mountain Lake Acquisition Corp.
The deal will be valued at more than $675 million and the initial capital raise “will result in approximately $460 million in treasury assets funded.”
Avalanche Treasury Co. has also formed an “exclusive relationship” with the Avalanche Foundation, which planned to sell millions of AVAX tokens at a discounted price.
The transaction has already attracted “significant participation from leading institutional investors and crypto-native firms,” the company said in the announcement.
The company expects to list on the Nasdaq in the first quarter of 2026 under the ticker “AVAT,” depending on shareholder and regulatory approvals.
Dragonfly, ParaFi Capital, VanEck, FalconX, Monarq, Galaxy Digital, Pantera Capital, CoinFund, IMC, Kraken, Borderless and Hunting Hill have all expressed interest.
The AVAX price climbed shortly after the announcement to reach a 24-hour high of $31.36, but has since pulled back. The token is down over 1% and trading at $30.51 as of 6:13 a.m. EST.
AVAX price (Source: CoinMarketCap)
New Avalanche Treasury Firm Will Be Led By Industry Veterans
Avalanche Treasury Co. will be led by crypto industry veterans, including Emin Gün Sirer, the founder of the Avalanche development firm Ava Labs, who will come on as an adviser to the new entity.
Meanwhile, Ava Labs Chief Business Officer John Nahas will join the company’s board, which the firm says will provide “direct access” to the Avalanche ecosystem’s architects.
Bart Smith, the former Chief Executive Officer (CEO) of crypto market maker Susquehanna Crypto, has been named as the CEO of Avalanche Treasury Co.
AVAX Treasury Company Wants To Be Avalanche “Growth Engine”
In the announcement, Avalanche Treasury Co. said the Avalanche blockchain “has emerged as an enterprise blockchain of choice,” adding that “major corporations, financial institutions, and government entities” are building production applications on the network.
Now, the company seeks to move “beyond passive accumulation models and simple ETF wrappers.” In the announcement, the firm said that it “intends to deploy capital directly into the Avalanche ecosystem.”
That capital will be deployed through three pillars. They are “targeted protocol investments to drive adoption and transaction flow, partnership activation with enterprises building on-chain rails for RWAs, stablecoins, payments, and direct support for institutional L1 launches with validator resources and liquidity.”
“Our purpose is to serve as a growth engine for the entire ecosystem,” Smith said in a statement. As the blockchain begins to thrive, the Avalanche Treasury Co. CEO said that it will grow the “fundamental value” of his firm’s own AVAX reserves.
This is not the first company that has decided to build a treasury around Avalanche’s native token. On Sept. 22, AgriFORCE Growing Systems announced that it will rebrand as AVAX One and purchase $700 million worth of AVAX.
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