Avalanche Treasury Co. Announces $675 Million+ Business Combination with Mountain Lake Acquisition Corp. with Goal to Build $1 Billion+ Ecosystem Treasury
- Exclusive relationship with Avalanche Foundation, beginning with $200 million discounted token sale at announcement
- $675 million+ transaction, including approximately $460 million in treasury assets following equity private placement financing, assuming no MLAC redemptions
- 0.77x mNAV entry point delivering 23% discount to investors
Avalanche Treasury Co. (AVAT), an ecosystem-aligned digital asset treasury company with an exclusive relationship with the Avalanche Foundation, today announced a definitive business combination agreement with Mountain Lake Acquisition Corp. (NASDAQ:MLAC) valued at over $675 million. The transaction includes approximately $460 million in treasury assets and is designed to create a leading public vehicle for AVAX exposure. The combined company expects to list on Nasdaq in Q1 2026, subject to regulatory and shareholder approval.
AVAT launches with an initial AVAX token purchase at a discount to market price and 18-month priority on Avalanche Foundation sales to U.S. digital asset treasury companies. AVAT delivers an entry point of 0.77x multiple of net asset value ("mNAV") for investors, a 23% discount compared to buying AVAX directly or through passive ETF alternatives (in each case as of today).
"Many institutions have difficulty accessing digital assets or are limited to holding native tokens without yield or ecosystem integration. 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."
The goal of AVAT's capital raising strategy is to own more than $1 billion worth of AVAX after becoming a public company, making it a foundational partner in the growing ecosystem and a leading public vehicle for institutional AVAX exposure. The initial capital raise will result in approximately $460 million in treasury assets funded concurrent with or shortly after this announcement.
Upon the closing of the business combination, the AVAT advisory board and combined company board will be comprised of veterans bridging traditional finance expertise with deep crypto-native relationships and media connectivity. Ava Labs founder Emin Gün Sirer will serve as strategic advisor, while Chief Business Officer John Nahas will join the public company board, providing direct access to the ecosystem's architects.
"We are very pleased to welcome AVAT to the Avalanche ecosystem," said Emin Gün Sirer. "I'm honored to support them as an advisor. Their participation reflects the growing sophistication and momentum shaping Avalanche's future."
The transaction comes as anticipated regulatory clarity is expected to accelerate institutional adoption. Avalanche has emerged as an enterprise blockchain of choice, with major corporations, financial institutions, and government entities building production applications on its multi-L1 framework. The network's multi-L1 framework allows institutions to launch custom blockchains while maintaining interoperability with other blockchains on the Avalanche network.
"This team and advisory group have the institutional credibility and crypto-native expertise to execute at scale," said Paul Grinberg, Chairman & CEO of MLAC. "Avalanche's architecture addresses real enterprise needs in ways other protocols simply don't. What attracted us to this transaction is AVAT's operational mandate and building a treasury that actively drives token utility and adoption, not just buying and holding."
AVAT believes that it represents an evolution in digital asset treasuries, moving beyond passive accumulation models and simple ETF wrappers. AVAT intends to deploy capital directly into the Avalanche ecosystem through three strategic pillars: targeted protocol investments to drive adoption and transaction flow, partnership activation with enterprises building on-chain rails for RWAs, stablecoins, and payments, and direct support for institutional L1 launches with validator resources and liquidity.
"Our purpose is to serve as a growth engine for the entire ecosystem," said Smith. "We intend to deploy capital to empower the best builders and accelerate the most promising technologies on Avalanche, which we believe creates a powerful cycle of value. As the network thrives through our strategic support, the fundamental value of our own treasury can grow with it. We are building a company where our success and the ecosystem's success are aligned."
AVAT CEO Bart Smith brings over two decades of Wall Street experience from Susquehanna International Group and AllianceBernstein, where he was an early pioneer in bridging Wall Street and digital assets with one of the first dedicated desks of its time. The executive team includes COO Laine Litman (formerly President of HiddenRoad and Head of FI & FX, Co-Head of Crypto at Virtu Financial) and Chief Strategy Officer Budd White (former Chief Product Officer at Multisig Labs).
In addition to Sirer and Nahas, the advisory board includes Haseeb Qureshi, a managing partner from Dragonfly Capital; Blockworks CEO Jason Yanowitz; and Aave founder Stani Kulechov, bridging traditional finance expertise with deep crypto-native relationships and media connectivity. The combined company's Board of Directors will include Dragonfly General Partner Rob Hadick and Paul Grinberg, Chairman & CEO of MLAC and Chairman of Axos Financial.
The transaction has attracted significant participation from leading institutional investors and crypto-native firms, including Dragonfly, ParaFi Capital, VanEck, Emin Gün Sirer, FalconX, Monarq, Galaxy Digital, Pantera Capital, CoinFund, IMC, Kraken, Borderless, and Hunting Hill. This diverse investor base represents a powerful combination of traditional asset managers, digital asset specialists, and ecosystem participants who bring both capital and strategic value to AVAT's mission. FalconX will be providing execution and credit services to support the company's trading and capital deployment activities. Additionally, Monarq will serve as an asset manager for AVAT, contributing institutional-grade portfolio management expertise to the company's treasury operations.
The proposed transactions are expected to close in Q1 2026, subject to regulatory and shareholder approval. Upon closing, AVAT intends to begin deploying capital into strategic ecosystem investments while establishing its validator infrastructure.
About Avalanche Treasury Co.
Avalanche Treasury Co. ("AVAT") is an ecosystem-aligned vehicle providing exposure to the Avalanche ecosystem through active treasury management, strategic investments, and an exclusive relationship with the Avalanche Foundation. AVAT bridges traditional finance and blockchain through a purpose-built operating system designed for institutional adoption.
About Mountain Lake Acquisition Corp.
MLAC is a blank check company formed for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses. The Company's management team is led by Paul Grinberg, its Chairman & CEO, and Douglas Horlick, its Chief Financial Officer, Director, and President.
Advisors
PJT Partners is serving as Financial Advisor to Avalanche Treasury Co. PJT Partners and Barclays are serving as Placement Agents and Capital Markets Advisors to Avalanche Treasury Co.
Skadden, Arps, Slate, Meagher & Flom LLP is serving as legal counsel to Avalanche Treasury Co. Davis Polk & Wardwell LLP is serving as legal counsel to PJT Partners and Barclays.
BTIG, LLC is serving as financial and capital markets advisor to Mountain Lake Acquisition Corp.
Ellenoff Grossman & Schole LLP is serving as legal counsel to Mountain Lake Acquisition Corp.
Sidley Austin LLP is serving as legal counsel to the Avalanche Foundation.
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