The deal includes $460 million in assets and a discounted purchase of AVAX tokens from the Avalanche Foundation.
Avalanche Treasury Co. (AVAT) – a company formed to provide institutional investors with exposure to the Avalanche network – announced it will merge with Mountain Lake Acquisition Corp. (Nasdaq: MLAC) in a transaction valued at more than $675 million.
The deal includes roughly $460 million in assets and is expected to close in early 2026, pending regulatory and shareholder approval, according to a press release. As part of the agreement, AVAT will purchase $200 million worth of Avalanche (AVAX) tokens at a discount through an arrangement with the Avalanche Foundation.
AVAX is currently trading at $31.10, up 1.2% on the day after retracing slightly from $31.31. Meanwhile, MLAC is trading at $10.45, up 2% in the past 24 hours.
The treasury company said the move aims to give investors a cheaper entry into AVAX compared to buying the tokens directly or through exchange-traded funds (ETFs). It also reflects a broader trend of companies incorporating crypto into their holdings as treasury assets.
“This team and advisory group have the institutional credibility and crypto-native expertise to execute at scale,” said Paul Grinberg, Chairman & CEO of Mountain Lake. “Avalanche’s architecture addresses real enterprise needs in ways other protocols simply don’t. What attracted us to this transaction is AVAT’s operational mandate and building a treasury that actively drives token utility and adoption, not just buying and holding.”
The deal comes as the Avalanche ecosystem has been gaining traction – in August, the network recorded its highest decentralized exchange (DEX) volumes since 2022, The Defiant reported. It processed $12 billion that month and surpassed $9 billion in September.
Total value locked (TVL) on Avalanche has also more than doubled this year, climbing from $1.3 billion in January to $2.3 billion at the time of writing. AVAX has also surged more than 100% from its April low of $16 to its current level. Much of this momentum has been driven by expectations that digital asset treasuries (DAT) will buy AVAX.
After the merger, the company hopes to accumulate more than $1 billion worth of AVAX. It plans to use the capital to support projects on the Avalanche network, work with businesses developing blockchain applications, and help new blockchains launch with validator support and liquidity.