- Avalanche Treasury signs $675M deal to launch $1B AVAX investment vehicle by 2026.
- Backed by Galaxy, Pantera, VanEck, Kraken, and FalconX for institutional AVAX exposure.
- AVAX network surges with 22% more active addresses and $726M in real-world assets.
Avalanche Treasury Co. has signed a $675 million business combination with Mountain Lake Acquisition Corp., setting in motion plans to build a $1 billion AVAX investment vehicle for institutional investors. The agreement includes $460 million in treasury assets and positions the firm for a Nasdaq listing in 2026, subject to regulatory approvals.
The partnership introduces one of the largest public structures dedicated to AVAX. According to Avalanche Treasury, the company intends to acquire more than $1 billion worth of the token at the time of its public debut. The structure is designed to provide investors with exposure to the digital asset at discounted levels compared to direct purchases or ETF alternatives.
The transaction has drawn backing from several major firms, including Galaxy Digital, Pantera Capital, ParaFi, VanEck, Kraken, and FalconX. Mountain Lake CEO Paul Grinberg explained that the appeal of the deal lies in AVAT’s mandate to drive network use cases rather than functioning solely as a holding company.
Strategic Role Within Avalanche Network
Avalanche Treasury confirmed that it will operate as an active participant in the ecosystem. Instead of following the passive strategy typical of exchange-traded funds, the company’s plan rests on three initiatives. These include investments in projects that expand network activity, development of validator infrastructure, and support for the adoption of stablecoins and real-world assets across enterprise settings.
The firm’s chief executive, Bart Smith, stated that the model reflects a closer integration with the Avalanche network than conventional investment vehicles. Smith emphasized that the treasury is designed to align with the network’s growth strategy, while providing structured access for institutions.
Rising Demand for AVAX Exposure
The announcement comes as demand for AVAX expands in global markets. Bitwise recently filed for a U.S.-based Avalanche ETF, reflecting investor appetite for token-linked financial products. Meanwhile, network use has been accelerating. Data shows that active addresses increased by 22% in the last month to more than 753,000, while transactions surged 201 percent to exceed 50 million.
Avalanche has also established itself as one of the largest chains for tokenized real-world assets, with $726 million committed. This positions it fourth behind Ethereum, ZkSync, and Polygon in RWA integration. Industry analysts have highlighted the platform’s ability to integrate with existing financial infrastructure, enhancing payment systems without requiring a full replacement.
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About the Author: Peter Mwangi
