Avalanche Treasury Co. went public on June 11 with a $675 million SPAC valuation and a simple pitch: buy a ton of AVAX tokens, stake them, and let shareholders ride the upside. Six weeks later, the stock has lost 73% of its value. At its worst, shares dropped as much as 93% from their debut price.
The company’s SEC filing now includes a phrase no investor wants to read: “substantial doubt” about its ability to continue as a going concern. In English: the company itself isn’t sure it’ll make it through the year without fresh capital.
A treasury strategy with nowhere to hide
Avalanche Treasury, trading under the ticker AVAT on NASDAQ, completed its public listing through a merger with Mountain Lake Acquisition Corp. The firm’s entire thesis revolves around holding approximately 15 million AVAX tokens, which represent roughly 3.5% of the total circulating supply of Avalanche’s native cryptocurrency.
AVAX is trading near $6.55, close to five-year lows. For context, Avalanche Treasury’s initial AVAX position was valued at around $265 million. By the end of Q1 2026, that same pile of tokens had shrunk to approximately $123 million. That’s more than $140 million in value evaporating from the balance sheet in a matter of months.
