Avalanche Treasury Co. is gearing up for a major public launch next year through a merger with Mountain Lake Acquisition Corp., aiming to acquire over $1 billion in AVAX tokens.
The announcement led to a significant uptick in the price of AVAX, the fundamental token of Avalanche blockchain, which spiked following news of the newly established company’s public offering plans.
The merger deal, assessed at over $675 million, is set to elevate the firm on the Nasdaq under the ticker symbol AVAT, conditional on regulatory and shareholder permissions.
Key Points:
- Avalanche Treasury Co. has partnered closely with the Avalanche Foundation, which oversees the blockchain’s development.
- The venture aims to possess more than $1 billion in AVAX post-launch, with initial fundraising expected to bring in around $460 million.
The AVAX token surged to an in-the-day high of $31.32 after the merger announcement and continues to demonstrate an increase of 2.3% over the last 24 hours.
Avalanche Treasury Co. will not just hold assets passively. The firm is poised to engage in active blockchain activities to foster revenue streams, assist businesses in tokenizing tangible assets, and develop its validator framework.
Bart Smith noted, “Many institutions face challenges in engaging with digital assets or are limited in holding tokens without yield or integration within ecosystems. Avalanche Treasury Co. was designed to provide a more valuable offer than simple exposure.”
Lastly, the company’s objectives include an initial AVAX token purchase at a market discount and a projected net asset value (mNAV) of 0.77—a perceived 23% discount compared to acquiring AVAX directly as speculated by some analysts.
