Avalanche Treasury Co has announced a merger with Mountain Lake Acquisition Corp, forming one of the largest crypto-related SPAC transactions to date. The deal, valued at over $675 million, underscores the growing appetite for institutional exposure to blockchain-native assets.
Deal Structure and Key Terms
The merger package includes:
- $460 million in treasury assets,
- $200 million AVAX purchase commitment led by the Avalanche Foundation,
- A priority trading window with U.S. treasury companies.
The combined entity aims to accumulate over $1 billion in digital assets, positioning itself as the leading public vehicle for institutional access to AVAX.
Avalanche Treasury’s shares (ticker: AVAT) are expected to debut on Nasdaq in early 2026, launching at a discount price of 0.77x net asset value (mNAV) — a 23% discount compared to direct AVAX purchases.
Investor Backing and Strategic Partners
The initiative has received strong institutional support, including Dragonfly, ParaFi Capital, VanEck, Galaxy Digital, Pantera Capital, CoinFund, and Kraken.
- FalconX will provide trading and credit services.
- Monarq will oversee portfolio management.
- Advisory roles are held by PJT Partners and Barclays, while Skadden and Davis Polk provide legal counsel.
The project’s advisory board will also feature industry leaders such as Emin Gün Sirer (Ava Labs), John Nahas, Stani Kulechov (Aave), and Hasib Qureshi (Dragonfly).
Strategic Vision
According to Bart Smith, CEO of Avalanche Treasury, the company’s mission is to offer investors active participation in the Avalanche ecosystem, rather than simple passive token ownership.
Planned allocations include:
- Large-scale AVAX purchases (over $1 billion in the long term),
- Validator infrastructure investments,
- Protocol funding and corporate partnerships.
Industry Impact
This merger highlights Avalanche’s broader strategy to build institutional-grade infrastructure for managing digital assets. Analysts see it as a milestone deal that could strengthen Avalanche’s position among public crypto investment vehicles and bring new liquidity into the ecosystem.
