Avalanche-Based Treasury Firm to Go Public on Nasdaq with $1 Billion Valuation Through Strategic Merger

AVAT, a treasury firm powered by the Avalanche (AVAX) blockchain, has announced its upcoming Nasdaq listing via a merger with Mountain Lake Acquisition Corp. (MLAC), a special purpose acquisition company (SPAC). This strategic move positions AVAT with a valuation of approximately $1 billion, as revealed in the firm's announcement on November 1.

The merger draws attention due to the involvement of notable financial firms, including Dragonfly, ParaFi Capital, VanEck, Galaxy Digital, Pantera Capital, Kraken, and CoinFund. Additionally, asset sales and credit services will be managed by FalconX, while Monarq oversees asset management. With Mountain Lake valued at $675 million (approximately KRW 947.3 billion), the merger represents a pivotal moment in bringing institutional-grade digital asset access to the forefront.

Expanding a Digital Asset Treasury for Institutional Investors

The newly established SPAC is launching with an initial treasury of $460 million (approximately KRW 645.6 billion). This financial pool aims to offer U.S.-based institutional investors an innovative gateway to AVAX exposure. A key objective after the firm's first-quarter Nasdaq listing in 2024 is expanding the treasury to $1 billion, further solidifying its position in the financial landscape.

Unlike traditional asset holding firms, AVAT aims to play a proactive role in deepening its connection to the Avalanche ecosystem. The SPAC plans to leverage its Digital Asset Treasury (DAT) strategy in collaboration with the Avalanche Foundation. One of its core strategies involves purchasing AVAX at prices below market value, offering discounted early-stage opportunities. Importantly, AVAT holds the right of first refusal to acquire Avalanche Foundation-owned DAT assets within the U.S. for a period of 18 months.

With this structure, AVAT provides institutional investors access to AVAX at a cost potentially 23% lower than traditional exchange-traded funds (ETFs) or direct acquisitions. This discount is attributed to the firm's modified net asset value (mNAV), calculated at 0.77 times.

Strategic Leadership Bolstering Institutional Access

AVAT’s leadership emphasizes lowering the barriers for institutional investors entering the world of digital assets. Emin Gün Sirer, the founder of Ava Labs (the team behind Avalanche), will join AVAT as a strategic advisor, enhancing its top-tier strategic direction. Bart Smith, CEO of AVAT, underlined the current difficulties U.S.-based institutions face in navigating the complexities of digital asset investments. He described AVAT’s platform as not only a treasury for holding AVAX but also one capable of generating ongoing returns and supporting the development of a broader Avalanche ecosystem.

Mountain Lake’s CEO, Paul Greenberg, shared his optimism about the collaboration, noting AVAT’s unique approach of combining asset accumulation with the initiative to enhance utility. "This partnership aligns perfectly with our vision of building adoption-focused frameworks for digital assets," Greenberg stated.

Creating Pathways for Adoption and Innovation

The upcoming Nasdaq listing highlights AVAT’s ambition to bridge institutional capital with blockchain-driven innovation. By adopting a treasury-backed strategy intertwined with the Avalanche platform, AVAT aims to foster broader adoption of digital assets while enhancing their practicality and value within institutional portfolios.

This move demonstrates a forward-thinking approach, leveraging robust financial structures and technological capabilities to position AVAX and Avalanche as key pillars in the evolving digital asset economy. With a focus on driving adoption and offering accessible avenues for institutional investment, AVAT is poised to reshape the role of digital assets within traditional financial landscapes.