Avalanche Treasury Co. has announced a definitive business combination agreement with Mountain Lake Acquisition Corp., a Nasdaq-listed company, valued at more than $675 million. The deal is designed to create a public vehicle for institutional exposure to AVAX while building a large-scale ecosystem treasury. With an exclusive relationship with the Avalanche Foundation, the company aims to grow its assets to over $1 billion, marking one of the most ambitious steps in the development of ecosystem-focused digital asset treasuries.

This development comes alongside broader efforts by the Avalanche Foundation to expand its treasury strategy in the United States, highlighting the growing importance of structured vehicles for institutional access to digital assets. If completed, the transaction could establish Avalanche Treasury Co. as a central partner in driving adoption and liquidity within the Avalanche network.

Details of the $675 Million+ Business Combination

According to the announcement, the combination with Mountain Lake Acquisition Corp. (MLAC) includes approximately $460 million in treasury assets following an equity private placement, assuming no redemptions from MLAC shareholders. The new entity expects to list on Nasdaq in the first quarter of 2026, pending regulatory and shareholder approval.

Avalanche Treasury Co. (AVAT) has launched with an initial discounted purchase of AVAX tokens and secured an 18-month priority on Avalanche Foundation sales to U.S. digital asset treasury companies. The structure offers investors a 0.77x multiple of net asset value, equivalent to a 23% discount compared with purchasing AVAX directly or through existing ETF alternatives.

Leadership for the new entity brings experience from both traditional finance and crypto. CEO Bart Smith, a former Wall Street executive, emphasized that the company is intended to serve as an active strategic partner within the Avalanche ecosystem rather than simply offering passive exposure. Ava Labs founder Emin Gün Sirer will act as a strategic advisor, while Avalanche’s Chief Business Officer John Nahas is set to join the public company board.

The initiative has also attracted investment from well-known institutional and crypto-native firms such as Dragonfly, Pantera Capital, VanEck, CoinFund, Galaxy Digital, and Kraken. FalconX will support execution and credit services, while Monarq will contribute asset management expertise to oversee treasury operations.

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Avalanche Foundation’s Treasury Plans

The Avalanche Foundation has been working on a larger strategy to create dedicated digital asset treasuries in the U.S. Reports earlier this year indicated that the foundation sought to raise up to $1 billion through two separate deals, both involving discounted sales of AVAX tokens to treasury companies.

One of these deals was structured as a private investment in a Nasdaq-traded company, led by Hivemind Capital with advice from SkyBridge Capital’s Anthony Scaramucci. The second involved a special purpose acquisition company backed by Dragonfly Capital. Together, these initiatives reflect a broader move toward establishing corporate digital asset treasuries that can deploy capital into blockchain ecosystems at scale.

By aligning Avalanche Treasury Co. with the foundation, the combination underscores a shift from passive asset holding to active capital deployment. AVAT has outlined three strategic areas for investment: targeted protocol funding to encourage adoption, partnerships supporting on-chain rails for stablecoins and real-world assets, and validator support for institutional blockchain launches.

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Aiming for a $1 Billion Ecosystem Treasury

If the combination closes as expected, Avalanche Treasury Co. plans to expand its holdings to over $1 billion in AVAX, positioning itself as a key growth driver for the network. The company intends to fund builders, provide liquidity, and accelerate technologies that strengthen Avalanche’s ecosystem.

While the transaction still requires regulatory and shareholder approval, its scale signals an evolving model for how blockchains and institutions interact. Rather than focusing solely on token accumulation, the business combination emphasizes capital deployment that supports network utility and long-term ecosystem value.

Avalanche Treasury Co. business combination with Mountain Lake Acquisition Corp. marks a milestone in institutional adoption strategies. By combining significant capital, governance expertise, and an exclusive relationship with the Avalanche Foundation, the initiative represents a step toward building one of the largest ecosystem-focused treasuries in the digital asset industry.