Avalanche Treasury Co. (AVAT) will merge with Mountain Lake Acquisition Corp. in a $675 million SPAC deal, forming a vehicle that plans to hold a $1 billion AVAX treasury and list on Nasdaq in early 2026 under the ticker AVAT. The Avalanche Foundation, Galaxy Digital, Pantera and VanEck back the transaction, with the stated goal of giving institutions a regulated way to own AVAX.
The vehicle starts with about $460 million in existing treasury assets, and the Avalanche Foundation will add $200 million of AVAX bought at a 23% discount, according to 99bitcoins or BusinessWire. Bart Smith, formerly of Wall Street, becomes CEO, while Emin Gün Sirer serves as strategic advisor and John Nahas joins the board, according to the announcement.
Deal overview and structure
The combined entity plans a $1 billion AVAX treasury and a public listing in early 2026 under AVAT. The transaction is designed to provide a regulated route for institutions seeking AVAX exposure, aligning with backing from the Avalanche Foundation, Galaxy Digital, Pantera and VanEck.
The company will operate as a public, regulated route for institutions that want token exposure. The business plan rests on three activities: invest in protocols that drive usage and transactions, partner with firms that build on-chain rails for real-world assets and payments, and supply validation and liquidity to institutional Layer 1 launches, according to BusinessWire. The approach deploys capital actively instead of holding tokens passively.
For institutions, the listing and corporate wrapper aim to cut compliance hurdles and provide a regulated path to AVAX. For the AVAX market, analysts cited by 99bitcoins set technical and price targets of $35–$50 for Q4 2025, contingent on support levels, and the deal already feeds the price narrative.
For adoption and liquidity, the mix of institutional capital and crypto venture capital can deepen liquidity across Avalanche-linked networks and projects if the money is put to work. Risks include high token volatility, the need for precise strategic execution, and AVAX’s lag behind rivals in DeFi and dApp adoption, according to the same sources.
The next milestone is the Nasdaq listing in early 2026 and the closing of committed assets. Success depends on completion of the purchase plan, integration with the Avalanche Foundation, and regulatory acceptance by institutional investors, according to the cited releases.
In sum, the AVAT–Mountain Lake SPAC aims to create a regulated institutional access point to AVAX with an actively managed $1 billion treasury. The outcome will hinge on execution, market conditions and regulatory acceptance ahead of the planned 2026 listing.
