Avalanche Treasury Co. has secured a $675 million business combination with Mountain Lake Acquisition Corp., as detailed in Nasdaq filings, aiming to create a publicly traded vehicle dedicated to accumulating over $1 billion in AVAX tokens. This strategic move is designed to enhance institutional access to the Avalanche ecosystem, with the merged entity expected to be valued at over $675 million upon completion, targeting a Nasdaq listing under the ticker AVAT by the first quarter of 2026.
The funding includes approximately $460 million raised from a round involving prominent investors such as Dragonfly, ParaFi Capital, Pantera Capital, VanEck, and Galaxy Digital, alongside individual backers like Ava Labs co-founder Emin Gün Sirer. Mountain Lake contributed roughly $230 million in pre-deal capital. As part of the plan, Avalanche Treasury Co. has already begun purchasing AVAX at a discount, acquiring $200 million worth at about 0.77 times net asset value—a 23% discount relative to current prices—to build a strategic treasury that could account for over 8% of AVAX's circulating supply.
John Wu, President of Ava Labs, emphasized, "The merger with Mountain Lake Acquisition Corp. will allow us to leverage the capital markets effectively and position Avalanche as a leading ecosystem for institutional investment." CEO Bart Smith, a Wall Street veteran, added that the entity will act as a "growth engine" for Avalanche, deploying capital to support builders and technologies on the network, fostering a cycle of value creation. The advisory board features industry leaders like Aave founder Stani Kulechov and Dragonfly partner Haseeb Qureshi, bolstering credibility.
Following the announcement, AVAX price briefly surged over 2% to an intraday high of $31.32, though it struggled to maintain momentum against resistance levels. Despite this, AVAX remains up more than 30% from September lows, driven by growing institutional interest, including other entities like AgriFORCE pivoting to Avalanche-focused strategies.
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