Avalanche Token Climbs as Treasury Firm Plans $1B AVAX Purchase After SPAC Deal

AVAX, Avalanche’s native token, has gained some momentum. This is all thanks to Avalanche Treasury Co.’s announcement to go public and acquire $1 billion worth of AVAX tokens. The treasury company has also revealed that it will go public in the United States of America. The firm announced that it will merge with Mountain Lake Acquisition Corp. The deal with the special purpose acquisition company (SPAC) is valued at over $675 million. The combined entity will make its debut on Nasdaq in the first quarter of 2026. It will appear under the ticker symbol “AVAT” after shareholder and regulatory approvals.

Avalanche Treasury Co. to Merge with Mountain Lake Acquisition

The firm has secured heavyweight support from across the crypto and financial sectors. Notable backers include Dragonfly, VanEck, FalconX, Monarq, Galaxy Digital, Pantera Capital, CoinFund, and Kraken. Bart Smith, the former chief executive of Susquehanna Crypto, has been appointed CEO, while Ava Labs founder Emin Gün Sirer will join as an adviser.

Avalanche Treasury Co. emphasized its “exclusive relationship” with the Avalanche Foundation, which has previously considered offering discounted AVAX tokens to treasury vehicles. The company expects to begin with $460 million in treasury assets once its capital raise concludes.

AVAX spiked to an intraday high of $31.32 following the announcement, before cooling slightly but still recording a 2.3% gain over 24 hours, according to CoinGecko data. The move comes amid a broader trend of firms either going public or shifting toward crypto-focused treasury strategies this year.

Unlike traditional holding firms, Avalanche Treasury Co. plans to actively engage in blockchain activity. The company outlined plans to deploy capital into “targeted protocol investments,” support tokenization of real-world assets and stablecoins, and run validator infrastructure within the Avalanche ecosystem.

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“Many institutions have difficulty accessing digital assets or are limited to holding native tokens without yield or ecosystem integration. We created Avalanche Treasury Co. to offer something more valuable than passive exposure,” Smith said in a statement.

The company also noted it will initially purchase AVAX tokens at a discount to market prices, with an 18-month priority window for token sales from the Avalanche Foundation to U.S. treasury firms. It is targeting a multiple of net asset value (mNAV) of 0.77, framing the move as a 23% discount compared to buying AVAX directly.

However, analysts at NYDIG cautioned that mNAV is a controversial metric, arguing it does not fully reflect a company’s underlying financial health.

Avalanche Treasury Co.’s debut follows AgriFORCE Growing Systems’ September decision to rebrand as AVAX One and pursue a $700 million AVAX purchase, underscoring growing institutional appetite for the token.