Avalanche Treasury Bags $675M SPAC Deal to Boost Access to AVAX

Avalanche Treasury Co. (AVAT) recently announced a business combination with Mountain Lake Acquisition Corp., valuing the deal at more than $675 million. This alliance sets the stage for AVAT to become a central vehicle for large-scale investment in Avalanche’s AVAX token. The agreement marks one of the largest crypto-related SPAC transactions to date

AVAT Strikes $660M Deal and Plans Nasdaq Listing in 2026

The agreement includes $460 million in projected treasury assets at closing and equity considerations. 

It also features an exclusive $200 million discounted AVAX purchase allocation with the Avalanche Foundation. In addition, AVAT has secured an 18-month exclusive window to access future Avalanche Foundation sales for U.S. treasury firms.

Unlike exchange-traded funds (ETFs) that passively track token prices, AVAT intends to channel capital directly into the Avalanche ecosystem. The company’s long-term goal is to buy over $1 billion worth of AVAX and also invest in protocol development, business partnerships, and validator infrastructure.

Once approved by regulators and shareholders, the combined company expects to list on Nasdaq in early 2026. At launch, investors will enter at a 0.77x modified net asset value (mNAV), giving them a 23% discount compared with purchasing AVAX directly or through ETF-style products.

Backed by Industry Heavyweights

This agreement has already attracted support from both traditional and crypto-native investors. Well-known investor Dragonfly Capital is sponsoring this effort, ParaFi Capital, VanEck, Galaxy Digital, Pantera Capital, CoinFund, and Kraken have all backed the project. 

FalconX will take care of trading and credit services, while Monarq will help manage the treasury portfolio. AVAT is getting advice from top firms like PJT Partners and Barclays, with legal support from Skadden and Davis Polk. 

It has also brought in key Avalanche leaders to build stronger ties. Emin Gün Sirer, founder of Ava Labs, will serve as a strategic advisor. John Nahas, Ava Labs’ Chief Business Officer, will sit on the company’s board.

Other advisors include Aave founder Stani Kulechov, Dragonfly Capital’s Haseeb Qureshi, and MLAC CEO Paul Grinberg. The board will also feature Dragonfly General Partner Rob Hadick.

Avalanche Activity Surges as AVAX Demand Grows

The timing of AVAT’s launch comes as demand for AVAX exposure is rising. Bitwise recently filed for an Avalanche ETF in the U.S., signaling growing institutional interest. 

Network activity on Avalanche is growing quickly. Last month, the number of active addresses went up by 22% to more than 753,000, while transactions rose by 201% to over 50 million.

Avalanche is also becoming a leader in real-world asset (RWA) tokenization, with $726 million already invested. This makes it the fourth-largest blockchain in the space, after Ethereum, ZkSync, and Polygon.

Analyst Olivia Vande Woude explained that Avalanche could help modernize traditional payment systems. Instead of replacing networks like SWIFT or Fedwire, Avalanche can work alongside them, making transactions faster and more efficient.