A major step has been taken in the Avalanche ecosystem. Avalanche Treasury Co. (AVAT) has signed a merger agreement with Mountain Lake Acquisition Corp. worth over $675 million. This transaction stands out as one of the largest SPAC deals aligned with the crypto industry. Approximately $460 million in treasury assets will be available at closing, and the Avalanche Foundation will also provide the right to purchase AVAX at a discounted price of $200 million.
The company's long-term plan is to purchase over $1 billion worth of AVAX, creating a regulated, publicly traded AVAX exposure vehicle for institutional investors. AVAT will also invest capital in protocol investments, validator infrastructure, and institutional partnerships. The company is expected to begin trading on Nasdaq under the ticker symbol "AVAT" in early 2026.
Avalanche is building strategic partnerships
The deal has strong backers from the traditional finance and crypto worlds. Dragonfly, ParaFi Capital, Pantera Capital, VanEck, Galaxy Digital, CoinFund, and Kraken are among the institutions investing in the project. FalconX will provide trading and credit services, while Monarq will manage a portion of the treasury portfolio. Barclays, PJT Partners, Skadden, and Davis Polk are among the leading legal and financial advisors.
One of AVAT's most notable advantages to investors is the ability to enter AVAX at a discount of approximately 23% compared to purchasing it directly or through alternative ETFs. The company plans to start at an entry point of 0.77x mNAV. CEO Bart Smith said, "We see many institutions struggling to access digital assets. Avalanche Treasury Co. is built to be an active and strategic partner, moving beyond being a passive investment vehicle."
AVAT's team comprises both Wall Street and cryptocurrency experts. Bart Smith, who has a background at Susquehanna International Group and AllianceBernstein, is joined by Laine Litman from HiddenRoad and Virtu Financial as COO and Budd White from Multisig Labs as CSO. Avalanche founder Emin Gün Sirer is also joining the company as a strategic advisor. John Nahas, Head of Business Development at Ava Labs, will also serve on the publicly traded company's board of directors.
“I am delighted that AVAT is joining the Avalanche ecosystem,” Sirer said in a statement. “This initiative reflects the institutional interest and momentum shaping Avalanche’s future.” Among the advisors are Aave founder Stani Kulechov and Dragonfly Capital partner Haseeb Qureshi.
Market Reaction and AVAX Price
Following the news, the AVAX price rose sharply, reaching $31.32 during the day. As of the following day, it continued trading with a daily gain of 2.3%, according to market data.
This move is seen as a strong example of the recently accelerating trend of "crypto treasury companies." Similar initiatives have been seen before, such as the Anthony Scaramucci-backed AVAX DAT and the AVAX One transformation of AgriFORCE Growing Systems. However, AVAT's size and direct agreements with the Avalanche Foundation give it a leg up.
