Avalanche Treasury Corp. has fallen about 73% since its Nasdaq debut, leaving the newly listed AVAX treasury company trading near $0.50 after closing its first session at $1.85 on June 11.
The company completed its business combination with Mountain Lake Acquisition Corp. on June 11, creating a Nasdaq-listed vehicle focused on Avalanche and AVAX exposure. Its strategy centers on accumulating AVAX, staking holdings and developing Avalanche-focused infrastructure.
AVAT’s October transaction announcement described a $675 million-plus business combination with a goal to build a $1 billion-plus ecosystem treasury. The original plan included an exclusive relationship with the Avalanche Foundation, a discounted token sale and about $460 million in expected treasury assets, assuming no MLAC redemptions.
The stock move puts AVAT in the same public-market stress category as other token treasury names. Solana treasury companies previously fell between 75% and 92% as concentrated token exposure weighed on their shares during a digital asset treasury selloff.
AVAT held 13,785,835 AVAX as of March 31, with a cost basis of $265.29 million and fair value of $122.76 million. The same table showed 13,579,449 AVAX at December 31, with a cost basis of $263.43 million and fair value of $167.09 million.
The quarterly filing also listed $2.06 million in staking revenue for the three months ended March 31, compared with a net loss of $26.78 million. AVAT received 179,636 AVAX through staking activities during the quarter and recorded $36,273 of staking-related fees.
AVAX recently traded near $6.81, while AVAT traded near $0.50. The company’s reported AVAX fair value already reflected a sharp decline from cost basis at March 31, before the stock’s full post-listing decline became visible in public trading.
Avalanche has also gained regulated market access through derivatives. CME Group launched AVAX and SUI futures in May, giving institutional traders cash-settled exposure to the tokens without holding them directly.
AVAT’s quarterly filing also disclosed a $25 million collateralized open loan. At closing, the company pledged about 5.6 million AVAX based on an initial collateral ratio of 200%. By the filing date, the pledged amount had increased to about 7.8 million AVAX.
The loan agreement requires AVAX collateral to meet specified coverage ratios. If the fair value of pledged AVAX falls below maintenance thresholds, AVAT may need to post additional collateral or repay part of the loan. A further decline below liquidation thresholds could allow the lender to liquidate pledged collateral.
The filing included going-concern language for the pre-combination company because of liquidity conditions, recurring losses and lack of committed funding if the business combination did not close. The management discussion later said the completed June 11 business combination and net loan proceeds improved liquidity and alleviated that substantial doubt for the 12-month look-forward period.
As of July 2, AVAT traded near $0.50, AVAX traded near $6.81, and AVAT’s latest quarterly filing listed 13.79 million AVAX held at March 31 with about 7.8 million AVAX pledged by the filing date.
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