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

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.

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.”

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.