Avalanche-backed treasury company plans $1B token purchase via Nasdaq SPAC

The Avalanche accumulation plan announced by Avalanche Treasury Co. pushed AVAX prices briefly above $31.32 on October 1, 2025, before losing momentum. The firm, backed by the Avalanche Foundation, confirmed it will acquire up to $1 billion worth of AVAX tokens through a new public vehicle.

The company will go public via a merger with Mountain Lake Acquisition Corp., a deal expected to close in the first quarter of 2026. Once completed, the combined entity will trade on Nasdaq under the ticker AVAT, with an estimated valuation of $675 million.

The move places the Avalanche accumulation plan at the center of institutional strategies for digital assets, reinforcing AVAX as a potential long-term treasury holding.

Strategic growth engine for the Avalanche ecosystem

Bart Smith, CEO of Avalanche Treasury Co. and a Wall Street veteran, said the Avalanche accumulation plan is designed to strengthen the network by funding its most promising projects.

 “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,” — Bart Smith, CEO, Avalanche Treasury Co.

The initiative is backed by leading investors, including Dragonfly, ParaFi Capital, Pantera Capital, VanEck, and Galaxy Digital. Emin Gün Sirer, co-founder of Ava Labs, is serving as a strategic advisor.

Paul Grinberg, Chairman and CEO of Mountain Lake Acquisition Corp., emphasized the team’s ability to execute the Avalanche accumulation plan effectively.

 “This team and advisory group have the institutional credibility and crypto-native expertise to execute at scale,” — Paul Grinberg, Chairman & CEO, Mountain Lake Acquisition Corp.

Avalanche accumulation plan offers discounted entry

A key element of the Avalanche accumulation plan involves acquiring tokens directly from the Avalanche Foundation at discounted rates. The first tranche included $200 million worth of AVAX, purchased at roughly 0.77 times net asset value. This gives investors a 23% discount compared to current AVAX prices and traditional ETF structures.

By targeting more than $1 billion in AVAX purchases, the firm expects to control over 8% of the token’s circulating supply at present valuations. This positions Avalanche Treasury Co. as one of the largest institutional holders of AVAX.

The structure underscores how the Avalanche accumulation plan not only supports the ecosystem but also creates unique entry points for long-term backers.

Price reaction and institutional momentum

Although the Avalanche accumulation plan briefly lifted AVAX prices, the rally stalled at resistance levels between $30 and $31. At press time, gains had largely retraced, though AVAX still trades 30% above September lows.

Market observers note that the Avalanche accumulation plan reflects a growing appetite among institutions for digital asset treasuries. Alongside AVAT’s initiative, other firms like AgriFORCE Growing Systems have announced pivots into Avalanche-focused treasury models.

The Avalanche accumulation plan thus highlights a broader trend: traditional firms and digital-native investors are increasingly viewing AVAX as a strategic store of value, even amid near-term market volatility.

Outlook for investors

For crypto investors, the Avalanche accumulation plan represents a significant validation of AVAX’s long-term potential. While immediate price action remains tied to technical resistance, the infusion of institutional capital and discounted token structures could reshape supply dynamics in the months ahead.

If executed successfully, the Avalanche accumulation plan will not only deepen liquidity but also accelerate adoption within the Avalanche ecosystem, setting a precedent for other layer-1 networks pursuing treasury-backed growth models.