Avalanche Treasury Co Shares Plunge 38% After $675M SPAC Merger Debut
MLAC•Avalanche Treasury Co’s stock plunged 38% after its Nasdaq debut following a $675 million SPAC merger with Mountain Lake Acquisition Corp. The company holds a $460 million treasury with roughly 15 million AVAX tokens, trading at a 23% structural discount as AVAX slides 33% month-over-month.
1. Rocky Nasdaq Debut
Avalanche Treasury Co opened on Nasdaq at $2.99 but closed at $1.85, marking a 38% drop and reaching an intraday low of $1.75 on its first trading day.
2. SPAC Merger Background
The firm emerged from a $675 million SPAC merger with Mountain Lake Acquisition Corp in June, carrying an initial treasury of $460 million and approximately 15 million AVAX tokens.
3. AVAX Market Pressures
AVAX trades near $6.6, down 33% over the past month and more than 95% below its peak, creating a roughly 23% structural discount to the company’s mark-to-market valuation.
4. Active Allocation Strategy
CEO Bart Smith frames the business as an active allocator in the Avalanche ecosystem, leveraging exclusive discounted token purchase rights and priority foundation sales, though execution of strategic deployments remains pending.
