TLDR
- Avalanche Treasury Co. is merging with Mountain Lake Acquisition Corp. in a $675 million SPAC deal set to close in Q1 2026.
- The company starts with $460 million in treasury assets and a $200 million exclusive discounted AVAX token purchase from the Avalanche Foundation.
- Major investors including Galaxy Digital, Dragonfly, Pantera Capital, VanEck, and Kraken are backing the venture.
- AVAT targets over $1 billion in AVAX holdings and plans to list on Nasdaq in early 2026.
- Investors receive a 23% discount compared to direct AVAX purchases through a 0.77x mNAV entry point.
Avalanche Treasury Co. has announced a definitive merger with Mountain Lake Acquisition Corp. in a deal worth more than $675 million. The transaction marks one of the largest crypto-focused SPAC deals on record.
The newly formed company will begin operations with approximately $460 million in treasury assets. These funds come from a private placement completed as part of the merger agreement.
AVAT has secured exclusive access to a $200 million discounted AVAX token allocation from the Avalanche Foundation. The company also received an 18-month priority purchase window for future Avalanche Foundation token sales to U.S. digital asset treasury firms.
The deal has attracted backing from prominent crypto and traditional finance investors. Supporters include Galaxy Digital, Dragonfly, ParaFi Capital, VanEck, Pantera Capital, CoinFund, and Kraken.
FalconX will handle trading and credit operations. Monarq will oversee treasury management functions.
Path to Public Markets
The combined entity expects to begin trading on Nasdaq in early 2026. The listing requires regulatory approval and shareholder votes from both companies.
AVAT has set an ambitious goal of accumulating more than $1 billion in AVAX tokens. The company positions itself as an institutional-grade vehicle for accessing the Avalanche ecosystem.
CEO Bart Smith brings experience from Susquehanna International Group and AllianceBernstein. He leads a team that includes COO Laine Litman from HiddenRoad and Virtu Financial, and CSO Budd White from Multisig Labs.
The company plans to deploy capital across multiple areas. These include protocol investments, enterprise partnerships, and validator infrastructure within the Avalanche network.
Strategic Advisors and Governance
Ava Labs founder Emin Gün Sirer will serve as a strategic advisor to AVAT. Avalanche Chief Business Officer John Nahas will join the public company board of directors.
The advisory board features industry leaders including Aave founder Stani Kulechov and Dragonfly Capital Managing Partner Haseeb Qureshi. Blockworks CEO Jason Yanowitz will also provide strategic guidance.
Mountain Lake Acquisition Corp. CEO Paul Grinberg and Dragonfly General Partner Rob Hadick will serve on the board. This structure combines traditional finance expertise with crypto-native leadership.
Investor Incentives
AVAT offers investors entry at 0.77 times modified net asset value. This pricing structure provides a 23% discount compared to purchasing AVAX directly or through ETF-style products.
Mountain Lake Acquisition Corp. shares rose 2% in premarket trading following the announcement. AVAX token prices remained relatively stable in the 24 hours after the deal was revealed.
The transaction is expected to close in the first quarter of 2026. PJT Partners and Barclays are serving as financial advisors, with Skadden and Davis Polk providing legal counsel.
AVAT joins other digital asset treasury companies in offering institutional investors exposure to specific cryptocurrencies through publicly traded vehicles.
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