- AVAT secured $200M in AVAX at a 23% discount through a 0.77x net asset value entry.
- The deal grants AVAT 18-month priority access to Avalanche Foundation token sales.
- AVAT plans to deploy capital across protocol investments, partnerships, and validator support.
Avalanche Treasury Co. has moved to establish one of the largest institutional AVAX treasuries to date through a definitive $675 million business combination agreement with Mountain Lake Acquisition Corp.
The deal includes approximately $460 million in treasury assets from equity financing. According to the announcement, the combined entity plans to list on Nasdaq in early 2026, pending shareholder and regulatory approval.
The structure aims to create a public market vehicle for investors seeking direct AVAX exposure. Notably, the company disclosed an initial $200 million AVAX purchase executed below market value.
The entry point reflects a 0.77x multiple of net asset value, offering a 23 percent discount compared with direct token purchases or passive exchange-traded products.
Discounted Entry and Priority Access
The agreement also grants Avalanche Treasury Co., referred to as AVAT, priority rights for 18 months on future Avalanche Foundation token sales to U.S. digital asset treasury entities. That arrangement positions AVAT to accelerate accumulation beyond its first tranche.
Executives stated that the long-term goal is to exceed $1 billion in AVAX holdings after the company becomes public. This accumulation strategy is designed to operate under an active mandate rather than passive storage.
Bart Smith, CEO of AVAT, said institutions often encounter operational barriers when attempting to access native tokens. However, he argued that the public structure offers exposure while directing capital into network-level initiatives instead of mere custody.
Advisory Board Mixes Wall Street and Crypto Leadership
The incoming advisory board includes Avalanche founder Emin Gün Sirer, who will serve as strategic advisor. Avalanche Chief Business Officer John Nahas will join the board of the public company. Other members include Haseeb Qureshi from Dragonfly Capital, Blockworks CEO Jason Yanowitz, and Aave founder Stani Kulechov.
According to Mountain Lake CEO Paul Grinberg, the appeal of the transaction stems from AVAT’s operational role in token deployment. He said that the structure intends to create token utility through targeted investments and ecosystem participation.
Capital Deployment Across Protocols
The company outlined three core capital allocation pillars. The first involves direct protocol investments aimed at boosting on-chain adoption and transaction activity. The second centers on partnerships with enterprises developing tokenized assets, stablecoin frameworks, and payment systems.
The third focuses on validator resources and liquidity support for new institutional blockchains launching within the Avalanche framework. Upon closing, AVAT intends to activate these strategies while establishing its validator infrastructure.
The transaction attracted institutional participation from firms such as Dragonfly, ParaFi Capital, VanEck, Galaxy Digital, Pantera Capital, and Kraken.
