AVAX Surges as Avalanche Treasury Co. Plans $1B Token Purchase and Public Listing
AVAX, the native token of the Avalanche blockchain, climbed sharply on Wednesday following the announcement of a public itemizing and main token buy by Avalanche Treasury Co., a brand new entity shaped to again the ecosystem.
Key Takeaways:
- Avalanche Treasury Co. plans to purchase $1 billion in AVAX, beginning with $460 million in preliminary funds.
- The firm will go public through a $675M SPAC deal and record on Nasdaq underneath the ticker “AVAT” in 2026.
- It has secured a precedence take care of the Avalanche Foundation for discounted AVAX token gross sales.
The company revealed it will merge with Mountain Lake Acquisition Corp., a particular objective acquisition firm (SPAC), in a $675 million deal.
The merger units the stage for Avalanche Treasury Co. to debut on the Nasdaq underneath the ticker “AVAT” in early 2026, pending regulatory and shareholder approval.
Avalanche Treasury Kicks Off $1B AVAX Buy with $460M in Initial Funds
At the center of the technique is a $1 billion AVAX acquisition plan. The firm says its preliminary capital increase will contribute roughly $460 million in treasury belongings, with the remainder anticipated to observe after itemizing.
The agency claims an unique partnership with the Avalanche Foundation, giving it early entry to discounted token gross sales.
AVAX responded positively to the information, hitting $31.32 intraday earlier than settling barely decrease. As of Thursday morning, the token remained up 2.3% over 24 hours, based on CoinGecko.
Avalanche Treasury Co. is the second devoted treasury automobile shaped across the Avalanche ecosystem. Its management consists of former Susquehanna Crypto head Bart Smith as CEO and Avalanche creator Emin Gün Sirer as an organization adviser.
Backing the enterprise are main crypto traders together with Pantera Capital, Galaxy Digital, VanEck, CoinFund, Dragonfly, FalconX, Kraken, and Monarq.
The firm isn’t stopping at token accumulation. It plans to take part actively within the Avalanche ecosystem by protocol investments, validator infrastructure, and supporting tokenization initiatives.
“Many establishments wrestle to entry or profit from digital belongings,” Smith mentioned. “We’re constructing one thing extra dynamic than simply holding AVAX.”
The construction displays a rising development of corporations rebranding or pivoting to digital asset treasuries. Last month, AgriFORCE Growing Systems introduced plans to rename itself AVAX One and buy $700 million value of AVAX tokens.
Avalanche Treasury Co. additionally introduced it might obtain an 18-month precedence window for future AVAX token gross sales by the Avalanche Foundation, additional reinforcing its strategic place.
The agency says it should buy AVAX at a reduction, claiming a 0.77 mNAV, roughly 23% under market worth.
Crypto Treasury Craze Unravels as Firms Turn to Debt-Fueled Buybacks
The crypto treasury technique that gained traction amongst small-cap corporations in 2024 is starting to unravel, with a number of corporations now launching debt-funded share buybacks to counter plunging inventory costs.
At least seven corporations, together with these in gaming, biotech, and EV sectors, at the moment are buying and selling under the worth of their crypto holdings, elevating crimson flags amongst traders and analysts.
Critics say the tactic indicators desperation and a departure from the unique concept that crypto appreciation alone would drive shareholder worth.
Notable circumstances embody ETHZilla (previously 180 Life Sciences), which noticed its inventory drop 76% regardless of accumulating ether and rebranding.
The firm not too long ago secured $80 million in debt to finance a $250 million buyback. Meanwhile, Empery Digital (previously Volcon) holds $476 million in BTC however has a market cap of simply $378 million, prompting it to develop its debt facility for comparable repurchases.
A current report from K33 Research reveals that 25% of public corporations holding Bitcoin now commerce at market values under the value of their BTC holdings, highlighting a pointy drop in investor confidence.
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