Avalanche Treasury Drops in Debut Week, Mirroring AVAX's Trajectory

The company was formed to accumulate AVAX and deploy capital across the Avalanche ecosystem through staking, validator operations and strategic investments. It emerged from a $675mn merger with special purpose acquisition company Mountain Lake Acquisition Corp. and has said it aims to build a treasury worth more than $1bn. 

The announcement marks the second AVAX treasury play in less than a year and comes as the decentralized finance (DeFi) protocol attempts to reposition itself around tokenization and institutional finance and away from DeFi, where it has struggled in recent years. Total value locked (TVL) on the Avalanche network has fallen from a peak of roughly $11bn in November 2021 to about $467mn in June 2026, according to DefiLlama data. AVAX's price has suffered as a result, underperforming Bitcoin (BTC) and Solana (SOL) over the past year. 

Treasury strategy 

Avalanche Treasury was launched with direct support from the Avalanche ecosystem. 

The company secured a discounted $200mn AVAX purchase from the Avalanche Foundation and received priority access to future Foundation token sales for 18 months. Avalanche founder Emin Gün Sirer serves as a strategic adviser, while Ava Labs chief business officer John Nahas sits on the board.  

The company is not the only treasury vehicle tied to Avalanche. In addition to the newly listed Avalanche Treasury, AVAX One, emerged from a Hivemind Capital-backed transaction that sought to raise roughly $550mn for AVAX purchases and ecosystem investments. Shares of that company, which adopted the ticker AVX in November 2025, have since fallen about 78%. 

The strategies of the two AVAX treasury companies mirror a broader trend that gained momentum during the 2024–25 bull market, when public companies rushed to accumulate digital assets through treasury vehicles. The sector has since come under pressure as crypto prices and investor appetite cooled despite continued institutional adoption. 

Market reaction

Founded in 2020, Avalanche is a Layer 1 blockchain network developed by Ava Labs. According to company materials, more than 550 projects are being built on the network, while institutional users include BlackRock, Franklin Templeton and FIFA.  

The two publicly traded AVAX treasury vehicles moved in opposite directions on Friday. After opening at $2.99 on 11 Jun, Avalanche Treasury shares ended its first day of trading at $1.85, a drop of 38%. On 12 Jun, the shares fell further, dropping to $1.38. Meanwhile, AVAX One gained 12.8% on 12 Jun to $0.42 following the announcement of a one-for-12 reverse stock split intended to avoid delisting from Nasdaq. 

Meanwhile, the AVAX crypto token was down 1% over the last 24 hours to $6.60 at 19:40 UTC on 12 Jun, sliding more than 68% over the past year. BTC has fallen about 41% over the same period, while SOL is down roughly 62%.