Avalanche Treasury Shares Drop 73% After $26.8 Million Quarterly Loss

Highlights:

• Avalanche Treasury lost about 73% of its stock value after reporting a $26.78 million first-quarter loss.
• More than half of the company’s AVAX holdings lost value as lower token prices hit its balance sheet.
• The completed SPAC merger improved liquidity, but pledged AVAX collateral still leaves the company exposed to further price declines.

Avalanche Treasury, an AVAX-focused digital asset treasury firm, has seen its Nasdaq-listed shares fall about 73% since its June 11 debut after reporting heavy first-quarter losses tied to its AVAX holdings. The company completed a $675 million merger with Mountain Lake Acquisition Corp. before listing on Nasdaq under the ticker AVAT.

🚨JUST IN: AVALANCHE TREASURY $AVAT CRASHES 73% SINCE NASDAQ DEBUT

Avalanche Treasury $AVAT has crashed 73% since listing on Nasdaq in June, per The Block.

The company paid $265 MILLION for its AVAX holdings and that bet is now worth $123 MILLION.

The company told regulators… pic.twitter.com/scuMjxeqSx

— Coin Bureau (@coinbureau) July 2, 2026

Its stock closed at $1.85 on its first trading day but is recently trading near $0.50, according to Yahoo Finance. The decline reduced the company’s market capitalization to less than $30 million

The company built its treasury strategy around holding AVAX as its primary corporate asset. It owned about 13.39 million AVAX tokens at the end of March after purchasing them for about $265.3 million. However, those holdings carried a fair value of only about $122.8 million by the end of the quarter. The decline erased more than half of the investment’s value and weakened the company’s balance sheet.

Investors sold AVAT shares after the company reported that lower AVAX prices cut the value of its treasury holdings during the first quarter. The lower AVAX prices reduced Avalanche Treasury’s digital asset value during the first quarter and pushed AVAT shares lower after the filing.

Avalanche Treasury Reveals Liquidity Outlook After SEC Filing

Avalanche Treasury disclosed in its latest quarterly filing with the U.S. Securities and Exchange Commission that a $26.78 million first-quarter loss and weaker AVAX prices hurt its financial position. Its operating subsidiary reported a net loss of $26.78 million during the first quarter. The filing also showed a net working capital deficit of $9.06 million at the end of March. The company said unrealized fair-value losses on its 13.39 million AVAX holdings caused most of the $26.78 million first-quarter loss.

The company management warned in the SEC filing that financial conditions before the Mountain Lake Acquisition merger created substantial doubt about operating for another year. Avalanche Treasury said uncertainty over completing the Mountain Lake Acquisition SPAC merger increased liquidity risks before the transaction closed.

However, the completed Mountain Lake Acquisition merger gave Avalanche Treasury additional capital that the management expects to fund operations for at least 12 months. The filing also disclosed that the company pledged about 7.8 million AVAX tokens as collateral for outstanding loans.

Crypto Treasury Model Faces Growing Pressure

AVAT joins several listed crypto treasury companies whose balance sheets weakened after crypto prices fell during the past year. Lower cryptocurrency prices reduce treasury asset values, create accounting losses, and frequently push investors to sell company shares.

AVAX One, formerly known as AgriFORCE Growing Systems, announced plans to raise $550 million to acquire more than $700 million worth of AVAX. However, its market capitalization has fallen to about $43 million, while its shares have dropped about 68% this year.

AgriForce is delighted to announce our $550 Million Capital Raise Strategy and will be renamed AVAX One.

This makes us the first NASDAQ-listed company with a dedicated strategy to maximize ownership of $AVAX, the native token of the Avalanche network.

Led by Hivemind Capital,…

— AVAX One (AVX) (@avax_one) September 22, 2025

Even larger treasury companies have not escaped market pressure. Strategy, the largest and longest-running Bitcoin treasury company, recently saw its enterprise multiple of net asset value fall below one for the first time. That metric measures how investors value a company’s business compared with the value of its Bitcoin holdings.

Avalanche has attracted more than $1.02 billion in institutional capital despite AVAT’s financial problems. The network also supports more than $1.65 billion in tokenized real-world assets. More than 550 projects now operate across the Avalanche ecosystem.