Avalanche Treasury announced a merger agreement with Mountain Lake Acquisition valued over $675 million. According to the press release, the deal includes a $460 million treasury asset projection, a $200 million discounted AVAX coin allocation from the Avalanche Foundation, and share exchanges. Upon completion, the company aims to offer institutional investors a publicly traded AVAX-focused vehicle, planning to list on Nasdaq by early 2026. Management emphasizes that the agreement represents an investment model that integrates with the network, extending beyond passive price tracking.
Details of the Agreement
The agreement outlines a valuation exceeding $675 million. Key components of the valuation include a $460 million treasury asset projection and a $200 million discounted AVAX coin purchasing right from the Avalanche Foundation. Avalanche Treasury plans an initial public offering at a 0.77x mNAV entry point, promising approximately a 23% discount compared to direct coin purchases or ETF-like products. The mid-term goal is to accumulate over $1 billion in AVAX coins, while the deal grants an 18-month priority window for sales directed at U.S. crypto treasury companies.
Capital protocol investments, corporate partnerships, and validator infrastructure will utilize the capital. FalconX will provide trading and credit services for executing the transaction. Monarq will manage a portion of the treasury portfolio. PJT Partners and Barclays will offer financial consulting, while Skadden and Davis Polk will handle legal matters. The investor list includes Dragonfly, ParaFi Capital, VanEck, Galaxy Digital, Pantera Capital, CoinFund, and Kraken.
Management, Ecosystem Connections, and Roadmap
The management team will merge Wall Street and crypto experience. Bart Smith, with previous roles at Susquehanna International Group and AllianceBernstein, will serve as CEO. Laine Litman, with experience at HiddenRoad and Virtu Financial, will be COO, and Budd White, with a background at Multisig Labs, will take on the CSO role. Strategically, the focus extends beyond holding cryptocurrencies, targeting institutional demand seeking yield and network integration. The company plans to act as an active and compliant ecosystem partner.
The advisory board and management include individuals with direct ecosystem links. Emin Gün Sirer, founder of Ava Labs, will serve as a strategic advisor, and CBO John Nahas will be a public company’s board member. Advisors will also include Aave’s founder Stani Kulechov and Dragonfly Managing Partner Haseeb Qureshi. The board will feature MLAC CEO Paul Grinberg and Dragonfly General Partner Rob Hadick.
The Nasdaq listing is targeted for early 2026, pending regulatory and stakeholder approvals. An 18-month priority window and phased AVAX coin acquisitions form the roadmap’s core.
According to CoinMarketCap, the initial response from AVAX to the development was limited. The popular altcoin was trading at $30.56, a 0.8% drop in the last 24 hours at the time of the report.
