Avalanche Treasury Seals $675M Deal With Mountain Lake to Build $1B AVAX Vehicle

Michael Adeleke
2 hours ago
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Backed by Galaxy, Pantera, and VanEck, Avalanche Treasury plans to become one of the largest AVAX vehicles, with a $1B accumulation strategy.

Highlights

  • Avalanche Treasury Co. (AVAT) signed a $675M business combination deal with Mountain Lake Acquisition Corp.
  • AVAT plans to list on Nasdaq in 2026 and accumulate over $1B worth of AVAX for institutional investors.
  • Backers include Galaxy Digital, Pantera, VanEck, Kraken, and FalconX, signaling strong institutional support.

Avalanche Treasury Co., in partnership with Mountain Lake Acquisition Corp., has unveiled a $675 million business combination deal aimed at creating one of the largest public investment vehicles for AVAX.

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Avalanche Treasury Plans $1B AVAX Vehicle

In a recent press release, Avalanche Treasury Co. (AVAT), which operates in close alignment with the token’s foundation, confirmed on Tuesday that it had signed a definitive agreement with Mountain Lake (Nasdaq: MLAC). The $675 million deal includes $460 million in treasury assets.

This could pave the way for a Nasdaq listing for the treasury firm in early 2026, pending approvals. AVAT aims to accumulate more than $1 billion worth of AVAX upon its initial public offering. This would establish a dominant institutional gateway into the token ecosystem. Its initial structure provides investors with discounted exposure to AVAX compared to direct purchases or ETF alternatives.

We created Avalanche Treasury Co. to offer something we believe will be more valuable than passive exposure,” said AVAT CEO, Bart Smith. “This is a public company launching as an active, strategic partner within the Avalanche network, offering a level of integration and alignment that investors have been demanding.”

This comes after the Avalanche Foundation launched plans to establish two U.S.-based vehicles aimed at acquiring digital assets, one of which would be a new treasury company.

The company will actively channel capital into the ecosystem, in contrast to conventional ETF wrappers. Its three-pronged approach consists of investing in projects that increase network activity, supporting validator infrastructure, and financing enterprise adoption of stablecoins and real-world assets.

The transaction has drawn heavyweight backers, including Galaxy Digital, Pantera Capital, ParaFi, VanEck, Kraken, and FalconX. 

Paul Grinberg, CEO of Mountain Lake, noted that the token’s architecture uniquely meets enterprise needs: “What drew us to this deal was AVAT’s mandate to drive token utility and adoption actively, not just buy and hold.”

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Growing Fundamentals Boost AVAX

The timing of Avalanche Treasury’s launch is noteworthy. Institutional demand for the token’s exposure is rising, with Bitwise filing for an Avalanche ETF in the U.S. 

Meanwhile, AVAX network activity is climbing sharply. In the last month, active addresses increased 22% to over 753,000, while transactions increased 201% to over 50 million.

One important factor is the platform’s increasing role in turning real-world assets into digital tokens. With $726 million invested, it now ranks as the fourth-largest chain for real-world assets after Ethereum, ZkSync, and Polygon.

Furthermore, business development analyst Olivia Vande Woude touted Avalanche to play a central role in modernizing traditional payment rails. Instead of replacing systems like SWIFT or Fedwire, she said, the platform can integrate into existing frameworks to enhance speed and efficiency. 

The token’s new fundamentals essentially explain the growing adoption by retail investors and institutions.

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Michael Adeleke is a passionate crypto journalist known for breaking down complex blockchain concepts and market trends into clear, engaging narratives. He specializes in delivering timely news and sharp market analysis that keeps crypto enthusiasts informed and ahead of the curve. With an engineering background and a degree from the University of Ibadan, Michael brings analytical depth and precision to every piece he writes.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.