Avalanche Treasury Co. Sets $675M SPAC Merger, Eyes $1B AVAX Treasury Expansion

Public listing plan drives institutional focus on token utility and discounted AVAX purchases

TL;DR

• Avalanche Treasury Co. announces $675M SPAC merger with Mountain Lake Acquisition Corp. and targets $1B in ecosystem treasury assets.
• Company to execute $200M discounted AVAX purchase, with 18-month priority rights for future token allocations.
• AVAX jumped to $31.32 on the news, while analysts flagged risks around mNAV valuation metrics.

Avalanche Treasury Co. has unveiled a landmark deal to merge with Mountain Lake Acquisition Corp. in a transaction valued at more than $675 million, laying the foundation for a Nasdaq listing in the first quarter of 2026 under the ticker “AVAT.” The newly combined entity will manage roughly $460 million in treasury assets funded through private placement of equity, and intends to expand that base into more than $1 billion of holdings. As part of its launch, the company will carry out an initial $200 million purchase of AVAX at a discount to current crypto price levels and secured an 18-month priority right to future token sales from the Avalanche Foundation made available to U.S. digital asset treasury firms.

Chief executive Bart Smith, previously head of Susquehanna Crypto, framed the effort as a shift away from passive holdings, emphasizing that many institutions face limitations in directly holding digital tokens or lack access to structured yield opportunities. “We created Avalanche Treasury Co. to offer something we believe will be more valuable than passive exposure,” Smith said, adding that the firm’s goal is to stimulate adoption by channeling capital into projects built on the Avalanche network. Plans include validator infrastructure, liquidity support for institutional layer-1 launches, and enterprise efforts such as stablecoin frameworks and real-world asset tokenization.

The initiative carries the endorsement of Ava Labs founder and CEO Emin Gün Sirer, who will serve as strategic advisor, alongside Avalanche Chief Business Officer John Nahas joining the public company’s board. The transaction has backing from major digital asset and institutional investors including Dragonfly, VanEck, FalconX, Monarq, Galaxy Digital, Pantera Capital, CoinFund, Kraken, IMC, Borderless and ParaFi. FalconX will provide execution and credit services to Avalanche Treasury Co., while Monarq is expected to manage part of the treasury portfolio.

Market reaction to the announcement was immediate, with AVAX rising more than 2.3% over 24 hours and hitting an intraday peak of $31.32, reflecting optimism around institutional capital inflows into the network. The deal’s structure also highlights a discounted entry multiple, set at 0.77 times mNAV, positioned as roughly a 23% discount to the coin market cap value of direct AVAX exposure or other passive strategies. Some analysts, however, warned that mNAV can be a misleading indicator and may not fully capture a company’s balance sheet strength or risk profile.

Paul Grinberg, CEO and chairman of Mountain Lake Acquisition Corp., said the Avalanche protocol’s technical design offers practical enterprise applications and argued the merger underscores a commitment to driving token utility and transaction flow rather than simply building reserves. Media coverage has pointed out that Avalanche Treasury Co. becomes the second treasury-style vehicle dedicated to Avalanche this year, reinforcing a trend of ecosystem-specific funds positioning to attract traditional capital markets into digital assets. The development also places Avalanche’s crypto price index performance under fresh attention, as institutional engagement through AVAT could shape future liquidity, adoption, and long-term valuation narratives around the blockchain’s coin market cap trajectory.

This article has been refined and enhanced by ChatGPT.