Avalanche has made one of its biggest strategic moves to date, yet the market doesn’t seem impressed.
Avalanche Treasury Co. (AVAT), a digital asset treasury company aligned with the Avalanche Foundation, announced it has entered a definitive business combination agreement with Mountain Lake Acquisition Corp. (Nasdaq: MLAC). The deal values the combined entity at more than $675 million, with AVAT as a central player in the ecosystem.
AVAT’s mission is straightforward: hold a reserve of AVAX and act as a long-term anchor in Avalanche’s growth. The company is led by Bart Smith, a Wall Street veteran with twenty years of experience bridging traditional finance and crypto. Its advisory board also features well-known names from Dragonfly Capital, Blockworks, and Aave, signaling that institutional backing is firmly behind the project.
Avalanche Treasury Co. (AVAT), an ecosystem-aligned digital asset treasury company with an exclusive relationship with Avalanche Foundation, today announced a definitive business combination agreement with Mountain Lake Acquisition Corp. (Nasdaq: MLAC) valued at over $675M.…
— Avalanche Foundation October 1, 2025
As part of its launch, AVAT purchased an initial batch of AVAX tokens directly from the Avalanche Foundation. These tokens are under a long-term lock-up, meaning they cannot be flipped on the open market but can still be used for staking and ecosystem activity.
The cash raised from this agreement will flow back to the Avalanche Foundation, where it will be deployed into ecosystem growth. That includes investments in real‑world assets (RWAs), additional AVAX purchases, and participation in AVAX DAT shares.
AVAX Price Action: No Lift From Major News
Despite the scale of this announcement, AVAX price barely reacted. The token continues to trade around $30, even as the broader crypto market is showing strong gains. For some investors, the lack of movement in AVAX compared to the wider market pump raises concerns about whether this type of institutional support is enough to spark momentum.