Avalanche Treasury Co. (AVAT), a digital asset treasury firm backed by the Avalanche Foundation, will go public through a $675 million merger with Mountain Lake Acquisition Corp. (MLAC), aiming to build over $1 billion worth of AVAX tokens in its treasury.
The agreement brings around $640 million in treasury assets and creates one of the largest public offerings for AVAX exposure. The new company is expected to be listed on Nasdaq in the first quarter of 2026, subject to approval by regulators and shareholders.
AVAT signs a $675M merger with Mountain Lake
MLAC is listed on Nasdaq as a special-purpose acquisition company (SPAC) because its sole purpose is to merge with or acquire another business, allowing the new business to join the stock market more easily.
According to the company, it sold shares to private investors and raised about $460 million in treasury assets to support the new company after the merger. This large pool of capital is meant for Avalanche Treasury Co. to hold and manage AVAX on behalf of large investors. Avalanche Treasury Co. will also be able to buy $200 million worth of AVAX tokens at a discount through the partnership.
What’s more, AVAT will have the first right to buy more tokens directly from the Foundation whenever it needs them for the next eighteen months. It means AVAT investors may be able to get cheaper access to AVAX compared to buying tokens directly, buying into AVAX exposure at a 0.77 times net asset value multiple, which is a 20% discount compared to the normal price.
The public listing strengthens Avalanche Treasury and grows the AVAX
AVAT aims to utilize these tokens in projects and provide investors with a clear path to generate value. The company plans to focus on three key areas, including protocol investment, where AVAT will support major components of the Avalanche blockchain.
The second area involves working with large businesses that develop tokens, such as stablecoins, and platforms that integrate real-world assets, including property or financial products, onto the Avalanche blockchain.
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