Avalanche Treasury Co. to Merge with Mountain Lake Acquisition Corp. in $675M+ Deal, Aiming for $1B+ Ecosystem Treasury

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10/01/2025 – 07:00 PM

• Exclusive relationship with Avalanche Foundation, beginning with $200 million discounted token sale at announcement

• $675 million+ transaction, including approximately $460 million in treasury assets following equity private placement financing, assuming no MLAC redemptions

• 0.77x mNAV entry point delivering 23% discount to investors

NEW YORK – Avalanche Treasury Co. (AVAT), a firm laser-focused on building a digital asset treasury intricately linked to the Avalanche ecosystem, has announced a definitive merger agreement with Mountain Lake Acquisition Corp. (Nasdaq: MLAC) in a deal valued at over $675 million. This move signals a significant institutional commitment to the Avalanche blockchain and its native AVAX token.

The transaction, which includes roughly $460 million in treasury assets, aims to establish a publicly traded investment vehicle offering exposure to AVAX. Pending regulatory and shareholder approvals, the combined entity is slated to list on the Nasdaq in Q1 2026. The initial investment involves AVAT acquiring AVAX tokens at a discounted rate and securing an 18-month priority window for future Avalanche Foundation token sales targeting U.S.-based digital asset treasury firms. The deal offers investors an attractive entry point at 0.77x multiple of net asset value (mNAV), representing a 23% discount compared to direct AVAX purchases or passive ETF investments, as of today’s market conditions.

“Many institutions face hurdles in accessing digital assets or are confined to holding native tokens lacking yield or ecosystem integration. Avalanche Treasury Co. was conceived to deliver what we believe is a more compelling value proposition,” stated AVAT CEO Bart Smith. “We are spearheading a public company launch as an active, strategic partner within the Avalanche network, offering investors a depth of integration and alignment they’ve been seeking.”

According to regulatory filings, AVAT’s capital raising ambitions target an AVAX treasury exceeding $1 billion post-public listing. This would position the company as a core participant within the growing Avalanche ecosystem. The initial capital infusion, earmarked at approximately $460 million, aims to strategically fund AVAT’s treasury shortly after the transaction closes.

Upon completion of the merger, the AVAT advisory board and combined company board will feature prominent figures navigating the intersection of traditional finance and the crypto space. Ava Labs founder Emin Gün Sirer will provide strategic guidance, and Chief Business Officer John Nahas will join the public company board, ensuring direct ecosystem insights at the leadership level.

Emin Gün Sirer commented, “We are thrilled to welcome AVAT into the Avalanche ecosystem. I’m honored to support them as an advisor. Their participation is emblematic of the increasing sophistication and the momentum shaping Avalanche’s trajectory.”

The timing of the transaction aligns with anticipated regulatory clarifications that are expected to boost institutional embrace of digital assets. Avalanche has cemented its position as a preferred enterprise blockchain, attracting major corporations, financial institutions, and government bodies to build production applications on its multi-Layer-1 (L1) framework. This framework is technologically innovative, enabling institutions to launch bespoke blockchains while preserving interoperability with other blockchains on the Avalanche network. This crucial feature allows institutions to comply with specific jurisdictional or regulatory requirements while still participating in the broader Avalanche ecosystem.

Paul Grinberg, Chairman & CEO of MLAC, emphasized, “This team and its advisory panel possess the institutional credibility and the nuanced crypto expertise necessary to execute at scale. Avalanche’s architecture addresses tangible enterprise pain points unlike other protocols. The defining factor behind our interest in this transaction is AVAT’s strategic mandate to cultivate a treasury that actively fuels token utility and adoption, rather than simply a passive buy-and-hold approach.” He further highlighted the potential for AVAT to drive significant value within the Avalanche network, noting its active role in fostering on-chain adoption among traditional financial institutions.

AVAT positions itself as a progressive evolution in digital asset treasury management, moving beyond conventional passive accumulation and simple ETF structures. The company is designed to deploy capital strategically into the Avalanche ecosystem through three core pillars: targeted protocol investments aimed at fostering adoption and transaction volume, collaboration with enterprises constructing on-chain infrastructure for Real World Assets (RWAs), stablecoins, and payments, and direct support for the launch of institutional L1 chains by providing validator resources and liquidity.

Smith articulated, “Our mission is to operate as a growth engine for the entire Avalanche ecosystem. We plan to allocate capital to empower leading developers and accelerate the most promising technologies built on Avalanche, which creates a powerful cycle of value. As the network flourishes through our strategic involvement, the intrinsic value of our treasury will grow in parallel with it. We are structuring a company where our success is inextricably linked to the success of the ecosystem.” This symbiotic relationship between AVAT and the Avalanche network represents a novel approach in the digital asset space, potentially setting a new standard for institutional investment in blockchain ecosystems.

AVAT’s leadership team comprises seasoned Wall Street veterans. CEO Bart Smith brings experience from Susquehanna International Group and AllianceBernstein. The executive team includes COO Laine Litman (formerly President of HiddenRoad and Head of FI & FX, Co-Head of Crypto at Virtu Financial) and Chief Strategy Officer Budd White (former Chief Product Officer at Multisig Labs).

The advisory board includes Haseeb Qureshi, a managing partner from Dragonfly Capital; Blockworks CEO Jason Yanowitz; and Aave founder Stani Kulechov. The Board of Directors will include Dragonfly General Partner Rob Hadick and Paul Grinberg, Chairman & CEO of MLAC and Chairman of Axos Financial.

The transaction has drawn notable participation from a diverse spectrum of institutional investors and crypto-centric firms, including Dragonfly, ParaFi Capital, VanEck, Emin Gün Sirer, FalconX, Monarq, Galaxy Digital, Pantera Capital, CoinFund, IMC, Kraken, Borderless, and Hunting Hill. FalconX will provide execution and credit services. Monarq will serve as an asset manager for AVAT.

The deal is expected to close in Q1 2026, pending customary approvals. Following the closing, AVAT plans to deploy capital into ecosystem investments and establish its validator infrastructure.

About Avalanche Treasury Co.

Avalanche Treasury Co. (“AVAT”) is an ecosystem-aligned treasury management firm for the Avalanche ecosystem. AVAT connects traditional finance and blockchain built for institutional adoption.

About Mountain Lake Acquisition Corp.

MLAC is a blank check company formed for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses. The Company’s management team is led by Paul Grinberg, its Chairman & CEO, and Douglas Horlick, its Chief Financial Officer, Director, and President.

Advisors

PJT Partners is serving as Financial Advisor to Avalanche Treasury Co. PJT Partners and Barclays are serving as Placement Agents and Capital Markets Advisors to Avalanche Treasury Co.

Skadden, Arps, Slate, Meagher & Flom LLP is serving as legal counsel to Avalanche Treasury Co. Davis Polk & Wardwell LLP is serving as legal counsel to PJT Partners and Barclays.

BTIG, LLC is serving as financial and capital markets advisor to Mountain Lake Acquisition Corp.

Ellenoff Grossman & Schole LLP is serving as legal counsel to Mountain Lake Acquisition Corp.

Sidley Austin LLP is serving as legal counsel to the Avalanche Foundation.

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