Avalanche Price Rises on $1B Treasury Firm Purchase Plan

Avalanche appears set for a potential rise following news of a major corporate purchase plan. Avalanche Treasury Co., a newly established company, revealed its plans to go public in the U.S. and buy over $1 billion worth of AVAX tokens.

This shows a growing trend of companies building digital asset treasuries. AVAX has been slightly volatile since the announcement, but the overall outlook points to steady activity from both corporate buyers and retail investors.

What Does The Deal Entail?

Avalanche Treasury Co. announced it will merge with Mountain Lake Acquisition Corp., a special purpose acquisition company, in a deal valued at over $675 million. The new company plans to list on Nasdaq under the ticker AVAT in the first quarter of 2026, once regulators and shareholders approve.

Emin Gün Sirer, founder of Ava Labs, will join as an adviser. His role shows the company’s connection to the Avalanche ecosystem and confidence in its plans.

This makes Avalanche Treasury Co. the second treasury company focused on AVAX. Big crypto investors, including Dragonfly, VanEck, FalconX, Monarq, Galaxy Digital, Pantera Capital, CoinFund, and Kraken, have already supported the merger. CEO Bart Smith, formerly of Susquehanna Crypto, brings strong market experience that may guide strategy and reassure investors.

How Will The Company Operate?

Avalanche Treasury Co. plans to hold over $1 billion in AVAX after going public, but it will do more than just collect tokens. The company will invest in selected protocols, help businesses tokenize assets, and use stablecoins within the Avalanche network. It also plans to run its own validator operations, actively supporting the blockchain.

Smith said the treasury’s strategy is different from passive holdings. “Many institutions can’t access digital assets or can only hold tokens without returns or network use,” he explained. The company wants to combine asset holding with active participation in blockchain protocols, which could create extra returns and support the network.

These moves reflect a wider trend in crypto, where firms combine treasury management with active engagement. Companies like AgriFORCE Growing Systems, now AVAX One, are making similar plans. This approach may strengthen investor confidence and boost AVAX adoption.

How Will AVAX Be Acquired?

Avalanche Treasury Co. is set to acquire AVAX tokens at a discount to current market prices. The company has an 18-month priority on sales from the Avalanche Foundation to U.S. digital asset treasury firms, allowing it to get tokens at a discount. Its projected mNAV multiple is 0.77, about 23% below market purchases.

Some analysts, including NYDIG, say mNAV may not show the full financial picture. Still, the approach shows the company’s focus on cost-effective token buying. This could attract both retail and institutional investors looking for a good entry point into AVAX.

After the announcement, AVAX rose to $31.32 but then settled at $30.54. It is still above its 7-day EMA of $30.41. Traders are watching $29.49, as a drop below this level could lead to a further decline toward $27.97.

Why Does It Matter for Avalanche?

Avalanche Treasury Co.’s entry highlights rising institutional confidence in AVAX and the Avalanche ecosystem as a whole. For investors, this step may strengthen the view of AVAX as a strategically important digital asset, especially as corporate treasury actions continue to affect pricing and market direction. Although short-term price changes are expected, the long-term direction points to a more stable and mature market.