AVAX Treasury Firm AVAT Shares Plunge 95% as Company Flags Business Risks

Digital asset treasury companies raise funds or issue shares to buy crypto assets, leaving their net asset values and stock prices highly exposed to crypto-price swings. Avalanche Treasury Corp. (AVAT) announced in October 2025 that it would merge with blank-check company Mountain Lake Acquisition Corp., with an original plan to build a $1 billion AVAX treasury. Its difficulties have become a case study for investors assessing the risks of the DAT model.

AVAT completed the merger and listed on Nasdaq on June 11, 2026. Its shares fell from about $10 in early June to approximately $0.50 on July 2, a decline of about 95% in one month. As of March 31, its 13,785,835 AVAX had cost $265.3 million but had a fair value of just $122.8 million. Its Form 10-Q had warned of liquidity and going-concern concerns, though the company said those issues had eased after the merger was completed and loan funding was secured.