TLDR
- Avalanche Treasury Co. will merge with SPAC Mountain Lake, valued at $675M.
- The firm plans to buy $1B worth of AVAX tokens post-merger by Q1 2026.
- Avalanche Treasury Co. has an exclusive deal with the Avalanche Foundation.
- CEO Bart Smith to lead the firm, focusing on active Avalanche blockchain growth.
Avalanche’s native token, AVAX, saw a notable rise after Avalanche Treasury Co. announced plans to go public in the U.S. The company will merge with Mountain Lake Acquisition Corp., a SPAC, in a deal valued at $675 million. The merger sets the stage for a Nasdaq listing under the ticker “AVAT” by Q1 2026. Along with the public offering, Avalanche Treasury Co. intends to acquire over $1 billion worth of AVAX tokens.
Avalanche Treasury Co. Merges with SPAC
Avalanche Treasury Co. is set to go public by merging with Mountain Lake Acquisition Corp., a special purpose acquisition company (SPAC). The transaction, valued at over $675 million, aims to facilitate a Nasdaq listing by the first quarter of 2026. The new entity, under the ticker symbol “AVAT,” plans to hold more than $1 billion in AVAX tokens following the merger.
The company will also hold approximately $460 million in treasury assets. This capital is expected to be leveraged, with the aim to purchase AVAX at a discount. The merger is backed by several crypto-focused venture firms, such as Dragonfly, VanEck, FalconX, and others. Bart Smith, former CEO of Susquehanna Crypto, has been named CEO of Avalanche Treasury Co.
A Strategic Relationship with Avalanche Foundation
Avalanche Treasury Co. has formed an exclusive partnership with the Avalanche Foundation, which supports the Avalanche blockchain. This relationship allows the company to purchase AVAX tokens at a discounted price.
The company plans to purchase AVAX tokens directly from the foundation, targeting a net asset value (mNAV) of 0.77. This would represent a 23% discount compared to buying AVAX on the open market.
The treasury firm’s plans to hold over $1 billion worth of AVAX come at a time when interest in the Avalanche blockchain continues to grow. The company aims to leverage the foundation’s support to enhance its ability to purchase tokens at a competitive price. The exclusive relationship is seen as an important advantage as it will allow Avalanche Treasury Co. to secure large amounts of AVAX at a discounted rate.
Revenue Beyond Passive Token Holding
Avalanche Treasury Co. intends to go beyond passive accumulation of AVAX tokens. The company plans to generate revenue by actively engaging with the Avalanche blockchain. This includes making targeted protocol investments, assisting enterprises with tokenization, and establishing validator infrastructure.
CEO Bart Smith explained that many institutions struggle to access digital assets or are limited to holding tokens without yield or ecosystem integration. Through its various activities, Avalanche Treasury Co. aims to provide a more integrated and active role in the Avalanche ecosystem, offering more than just passive exposure to the blockchain.
Analyst Concerns on mNAV Metric
Avalanche Treasury Co. has faced scrutiny over its use of the mNAV metric. The company has stated that it plans to launch with an initial AVAX token purchase at a discount, based on this metric.
However, analysts from NYDIG have raised concerns about the reliability of the mNAV. They argue that the metric does not properly represent the company’s financial position, which could lead to misunderstandings about the firm’s true value.
Despite this, the treasury company remains confident in its strategy and the mNAV discount. The firm asserts that it is poised to offer value beyond mere token accumulation. While the concerns about mNAV persist, Avalanche Treasury Co. is moving forward with its plans to secure a significant amount of AVAX tokens post-merger.
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