Digital asset treasury firm Avalanche Treasury Co., a part of the Avalanche (AVAX) ecosystem with a special relationship with the Avalanche Foundation, today announced a partnership with the Mountain Lake Acquisition Corp.
Avalanche Treasury Firm To Buy $1 Billion Worth Of AVAX
According to an official announcement made earlier today, Avalanche Treasury Corp. is set to merge with Mountain Lake Acquisition Corp., a special purpose acquisition company (SPAC). The deal is estimated to be worth over $675 million.
The newly created merged firm is expected to get listed on Nasdaq in Q1 2026, under the ticker symbol “AVAT.” After it goes public, the company is expected to buy more than $1 billion worth of AVAX tokens.
The business transaction between the two entities includes $460 million worth of treasury assets. Notably, the deal is primarily geared toward establishing a leading public vehicle for exposure to the AVAX token.
It is worth highlighting that AVAT will launch with an initial AVAX token purchase at a discount to market price. Additionally, it will have an 18-month priority on Avalanche Foundation sales to US digital asset treasury firms.
Specifically, AVAT will offer an attractive entry point of 0.77x multiple of net asset value (mNAV) for investors, a significant discount of 23% compared to purchasing AVAX directly or via passive exchange-traded fund (ETF) alternatives. Commenting on the development, Bart Smith, CEO of AVAT, said:
Many institutions have difficulty accessing digital assets or are limited to holding native tokens without yield or ecosystem integration. We created Avalanche Treasury Co. to offer something we believe will be more valuable than passive exposure. This is a public company launching as an active, strategic partner within the Avalanche network, offering a level of integration and alignment that investors have been demanding.
Importantly, Emin Gün Sirer, the founder and CEO of Ava Labs, the entity responsible for the development of the Avalanche blockchain, will join AVAT as an advisor. The newly created firm is just the second AVAX-focused treasury firm.
The announcement adds that AVAT will work toward deploying capital directly into the Avalanche ecosystem through three strategic pillars – targeted protocol investments, partnerships with enterprises building on-chain rails, and direct support for institutional L1 launches.
AVAX Surges Following The Announcement
The smart contract network’s native token AVAX witnessed a sharp increase following the announcement. The token reached a high of $31.32 on Binance, before it lost some of its gains.
This year has seen a significant increase in the launch of digital treasury firms. While digital treasury firms focused on Bitcoin (BTC) and Ethereum (ETH) have been around for a few years, more firms are now shifting focus to other altcoins such as Solana (SOL) and AVAX.
For instance, Nasdaq-listed VisionSys AI recently unveiled plans to launch a $2 billion SOL-based digital treasury program. At press time, AVAX trades at $30.17, down 1.3% in the past 24 hours.
