Avalanche Treasury Strikes $675M SPAC Deal to Build $1B AVAX Holdings

TLDR:

• Avalanche Treasury Co. confirmed a $675M SPAC deal with Mountain Lake, including $460M in treasury assets.
• AVAT purchased $200M worth of AVAX at a discount and secured 18-month priority rights on token sales.
• The company targets $1B in AVAX holdings post-listing, with Nasdaq debut planned in early 2026.
• Emin Gün Sirer and Avalanche executives will advise AVAT as it deploys capital into adoption-driven strategies.

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Avalanche Treasury Co. (AVAT) has entered a business combination valued at more than $675 million with Mountain Lake Acquisition Corp., a Nasdaq-listed SPAC. 

The deal includes about $460 million in treasury assets from equity financing and aims to create a public vehicle for AVAX exposure. Executives said the structure will allow institutions to access Avalanche more directly while avoiding the limitations of passive ETFs. 

The combined company expects to list in early 2026, pending regulatory and shareholder approval, according to a press release.

$200M AVAX Purchase and Discounted Entry Price

As part of the launch, AVAT disclosed an initial $200 million AVAX purchase at a discount to market price. 

The agreement also grants the company 18-month priority rights on future token sales from the Avalanche Foundation to U.S. treasuries. This setup is designed to accelerate AVAT’s accumulation strategy and position it as a leading holder of AVAX once the listing is complete.

Wu Blockchain reported that the entry point is priced at 0.77 times net asset value. That figure represents a 23 percent discount compared with buying AVAX directly or through exchange-traded alternatives. The company has stated its long-term goal is to build more than $1 billion in AVAX holdings after becoming public.

The transaction will bring in an advisory board that combines Wall Street backgrounds with crypto-native experience. Avalanche founder Emin Gün Sirer confirmed he will serve as a strategic advisor, describing AVAT as a partner designed to strengthen token adoption and ecosystem growth. 

Avalanche Chief Business Officer John Nahas will also join the public company board, giving AVAT direct input from the network’s leadership team.

Bart Smith, CEO of AVAT, said institutions face barriers when accessing digital assets directly. He explained that a public structure allows investors to gain exposure while contributing to Avalanche’s development. Smith added that the treasury will not be limited to holding tokens but will deploy capital into targeted ecosystem initiatives.

Capital Deployment Strategy and Ecosystem Focus

According to the release, AVAT intends to use raised funds across three main pillars. The first involves protocol investments that can drive adoption and increase on-chain activity. 

The second focuses on partnerships with enterprises building tokenized assets, stablecoins, and payment infrastructure. The third aims to provide validator resources and liquidity support for new institutional blockchains launching on Avalanche.

Paul Grinberg, CEO of Mountain Lake, said the appeal of the transaction comes from AVAT’s active mandate. He stated that the company’s approach is to create token utility and adoption rather than relying on simple accumulation. With the deal, Avalanche positions AVAT as both an institutional entry point and an aligned growth engine for its ecosystem.

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