Avalanche Gains Momentum As New Treasury Firm Eyes $1 Billion AVAX Purchase
Digital asset treasury agency Avalanche Treasury Co., part of the Avalanche (AVAX) ecosystem with a particular relationship with the Avalanche Foundation, immediately introduced 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 immediately, Avalanche Treasury Corp. is about to merge with Mountain Lake Acquisition Corp., a particular goal acquisition firm (SPAC). The deal is estimated to be value over $675 million.
The newly created merged agency is anticipated to get listed on Nasdaq in Q1 2026, beneath the ticker image “AVAT.” After it goes public, the corporate is anticipated to purchase greater than $1 billion value of AVAX tokens.
The enterprise transaction between the 2 entities contains $460 million value of treasury property. Notably, the deal is primarily geared towards establishing a number one public car for publicity to the AVAX token.
It is value highlighting that AVAT will launch with an preliminary AVAX token buy at a reduction to market worth. Additionally, it is going to have an 18-month precedence on Avalanche Foundation gross sales to US digital asset treasury corporations.
Specifically, AVAT will provide a pretty entry level of 0.77x a number of of internet asset worth (mNAV) for traders, a big low cost of 23% in comparison with buying AVAX instantly or by way of passive exchange-traded fund (ETF) options. Commenting on the event, Bart Smith, CEO of AVAT, stated:
Many establishments have problem accessing digital property or are restricted to holding native tokens with out yield or ecosystem integration. We created Avalanche Treasury Co. to supply one thing we imagine shall be extra invaluable than passive publicity. This is a public firm launching as an lively, strategic accomplice inside the Avalanche community, providing a degree of integration and alignment that traders have been demanding.
Importantly, Emin Gün Sirer, the founder and CEO of Ava Labs, the entity chargeable for the event of the Avalanche blockchain, will be part of AVAT as an advisor. The newly created agency is simply the second AVAX-focused treasury agency.
The announcement provides that AVAT will work towards deploying capital instantly into the Avalanche ecosystem via three strategic pillars – focused protocol investments, partnerships with enterprises constructing on-chain rails, and direct assist for institutional L1 launches.
AVAX Surges Following The Announcement
The sensible contract community’s native token AVAX witnessed a pointy enhance following the announcement. The token reached a high of $31.32 on Binance, earlier than it misplaced a few of its beneficial properties.
This yr has seen a big enhance within the launch of digital treasury corporations. While digital treasury corporations centered on Bitcoin (BTC) and Ethereum (ETH) have been round for a couple of years, extra corporations are actually shifting focus to different altcoins akin to Solana (SOL) and AVAX.
For occasion, Nasdaq-listed VisionSys AI just lately unveiled plans to launch a $2 billion SOL-based digital treasury program. At press time, AVAX trades at $30.17, down 1.3% prior to now 24 hours.