AVAT Merges with SPAC to Power Avalanche Ecosystem Growth

Avalanche Treasury Co. (AVAT) has finalized a $675 million business combination with Mountain Lake Acquisition Corp. (MLAC), a Nasdaq-listed SPAC, to create a public vehicle for AVAX exposure. The transaction includes approximately $460 million in treasury assets post-private placement financing and aims to list on Nasdaq in Q1 2026, pending regulatory and shareholder approvals. AVAT's strategy involves deploying capital to accumulate over $1 billion in AVAX holdings, positioning it as a cornerstone investor in the Avalanche ecosystem. The company launched with an initial $200 million AVAX purchase at a discounted market price and secured 18-month priority rights on future token sales from the Avalanche Foundation.

The structure offers investors an entry point of 0.77 times net asset value (mNAV), a 23% discount compared to direct AVAX purchases or passive ETF alternatives. AVAT's CEO, Bart Smith, emphasized the firm's role in addressing institutional barriers to digital asset access, stating the company will act as an active, strategic partner within the Avalanche network rather than a passive token holder. The advisory board includes Emin Gün Sirer, founder of Ava Labs, and John Nahas, Chief Business Officer of Avalanche, alongside figures from traditional finance and crypto-native firms like Dragonfly Capital and Aave.

AVAT's capital deployment strategy focuses on three pillars: protocol investments to drive adoption, partnerships with enterprises developing real-world asset (RWA) tokenization and stablecoin infrastructure, and support for institutional L1 launches through validator resources. This approach aligns AVAT's success with Avalanche's ecosystem growth, according to Paul Grinberg, MLAC's CEO, who highlighted the firm's ability to execute at scale and its alignment with enterprise needs. Institutional investors such as VanEck, Galaxy Digital, and Pantera Capital have participated in the deal, providing both capital and strategic expertise.

The transaction reflects Avalanche's growing appeal as an enterprise blockchain, with major corporations and governments leveraging its multi-L1 framework for custom blockchains and interoperability. AVAT plans to establish validator infrastructure post-closing and deploy funds into strategic ecosystem initiatives, including validator support and liquidity provision. The combined company's board will include a mix of traditional finance professionals and crypto-native leaders, ensuring a balance of institutional credibility and technical expertise.

The proposed deal is expected to close in early 2026, subject to approvals, with AVAT aiming to begin capital deployment and validator operations immediately thereafter. The firm's strategy diverges from passive accumulation models by integrating AVAX utility and adoption, as outlined by Smith, who described AVAT as a "growth engine" for the Avalanche ecosystem. With regulatory clarity anticipated to accelerate institutional adoption, AVAT's public structure is positioned to bridge traditional finance and blockchain innovation.