Avalanche Treasury Co. (“AVAT”) has announced a definitive $675 million business combination with Mountain Lake Acquisition Corp. (Nasdaq: MLAC), marking a pivotal step in institutional AVAX exposure. This transaction, which includes $460 million in treasury assets (pending no redemptions), aims to create a Nasdaq-listed entity focused on strategic ecosystem investment.
Through an exclusive relationship with the Avalanche Foundation, AVAT begins operations with a $200 million discounted token acquisition and an 18-month priority allocation on future AVAX sales to U.S. treasury entities. The deal offers investors a 0.77x mNAV entry point—representing a 23% discount compared to direct token purchases or passive ETF equivalents.
Addressing Institutional Barriers in Digital Asset Exposure
AVAT was designed to address institutional limitations in accessing digital assets. Many firms face regulatory and operational barriers, often leading to passive exposure without yield. AVAT, in contrast, operates as an active treasury platform, aligned with the Avalanche ecosystem.
“The structure of Avalanche Treasury Co. allows institutional capital to flow into the ecosystem with both exposure and influence,” stated Bart Smith, AVAT’s CEO. “We are not just holding tokens—we’re engaging strategically with the network.”
The company’s vision is to build a treasury surpassing $1 billion in AVAX holdings. The capital raised at transaction close will initiate this process, with $460 million in treasury assets expected to be secured immediately or shortly thereafter.
Strategic Board and Capital Deployment Framework
Upon completion of the merger, AVAT will establish a high-calibre board combining traditional finance leaders and crypto-native figures. Emin Gün Sirer, founder of Ava Labs, will act as strategic advisor. John Nahas, Avalanche Foundation’s Chief Business Officer, will sit on the board of the newly listed entity—strengthening its operational alignment with Avalanche.
Sirer commented: “AVAT’s creation reflects the increasing maturity of blockchain ecosystems. Their strategic mandate and structure represent a next-generation treasury model.”
This business combination arrives amid growing regulatory clarity, which is accelerating institutional participation in digital assets. Avalanche’s multi-layer L1 blockchain framework is already being adopted by corporations, financial institutions, and governments. The platform enables permissioned chain launches with cross-network compatibility.
Paul Grinberg, Chairman and CEO of MLAC, noted: “We believe Avalanche has the infrastructure enterprises need. What stood out with AVAT was the ability to deploy capital strategically, not passively.”
AVAT’s operating thesis revolves around three pillars:
- Protocol-level investments to stimulate network activity
- Enterprise partnerships for real-world asset (RWA) tokenisation, payments, and stablecoin infrastructure
- Validator and liquidity support for institutional Avalanche subnet launches
According to Smith: “Our goal is to fuel ecosystem growth. By allocating capital where it has multiplier effects, we create a treasury whose value grows with the network.”
Experienced Team and Robust Investor Base
AVAT’s leadership brings together deep institutional experience. Smith previously held senior roles at Susquehanna International Group and AllianceBernstein. The team also includes Laine Litman (ex-Virtu Financial, HiddenRoad) as COO, and Budd White (ex-Multisig Labs) as Chief Strategy Officer.
The advisory board is composed of respected figures including Haseeb Qureshi (Dragonfly), Jason Yanowitz (Blockworks), and Aave founder Stani Kulechov. Board members also include Dragonfly GP Rob Hadick and Paul Grinberg of MLAC and Axos Financial.
Investor interest in the transaction has been significant. Backers include Galaxy Digital, ParaFi Capital, FalconX, VanEck, Pantera Capital, CoinFund, Kraken, IMC, Borderless, and Monarq. FalconX will provide execution and credit services, while Monarq will manage AVAT’s treasury operations with institutional-grade portfolio oversight.
The transaction is scheduled to close in Q1 2026, pending shareholder and regulatory approvals. AVAT will then begin deploying capital into key ecosystem initiatives and validator infrastructure.
