AVAX rises as Avalanche Treasury, Mountain Lake SPAC seal $675M deal

The price of Avalanche’s native token, AVAX, has seen a notable increase after the Avalanche Treasury Company confirmed a major deal with Mountain Lake Acquisition Corp.

The agreement, valued at more than $675 million, is set to create one of the largest institutional investment vehicles for the token, with plans to buy more than $1 billion worth of AVAX.

The news has fueled optimism among traders and institutional investors, lifting AVAX to an intraday high of $31.32.

Although the token later eased back, it remains one of the top-performing assets in the sector this quarter, supported by renewed confidence in Avalanche’s ecosystem and rising network activity.

The new treasury vehicle targets $1B in AVAX

According to the agreement, Avalanche Treasury Co., often referred to as AVAT, will merge with Mountain Lake, a Nasdaq-listed special purpose acquisition company, and list publicly in early 2026 under the ticker “AVAT.”

The structure gives institutional investors a regulated way to gain exposure to AVAX while also promising active participation in the Avalanche network.

Already, Avalanche Treasury Co. has disclosed an initial purchase of $200 million worth of AVAX at a discounted rate through its exclusive relationship with the Avalanche Foundation.

Notably, the deal has attracted backing from some of the most influential names in digital asset investing, including Galaxy Digital, Pantera Capital, VanEck, ParaFi Capital, Kraken, FalconX and Dragonfly.

Individual figures such as Emin Gün Sirer, the founder of Avalanche’s development firm Ava Labs, are also directly involved.

Sirer will serve as an adviser to the new company, while Avalanche’s Chief Business Officer John Nahas is expected to join its board.

Leadership will be provided by Bart Smith, a Wall Street veteran with more than two decades of experience at firms such as Susquehanna International Group and AllianceBernstein.

Smith has described the treasury as a “growth engine” for the Avalanche network, saying it will fund promising projects and strengthen token adoption rather than act as a passive holder of assets.

Active strategy for ecosystem growth

Unlike traditional funds that only accumulate tokens, Avalanche Treasury Co. has outlined a three-pronged approach for deploying its capital.

The company will invest directly in protocols that can drive adoption, support validator infrastructure to secure the network, and work with enterprises on tokenisation of real-world assets and stablecoins.

This active mandate is seen as crucial at a time when institutional demand for digital asset exposure is rising.

Bitwise has already filed for an Avalanche ETF in the United States, and other companies such as AgriFORCE Growing Systems have announced similar plans to launch AVAX-focused treasuries.

Avalanche Network activity adds momentum

Beyond the treasury deal, Avalanche’s on-chain activity has surged in recent weeks.

The network processed more than 50 million transactions in the past month, up 201% from the previous period, while active addresses grew by 22% to more than 753,000.

A large portion of this activity has come from decentralised finance (DeFi) applications such as Trader Joe and Aave, alongside growing adoption of tokenised real-world assets, where Avalanche now ranks as the fourth largest chain.

The recent Octane upgrade, which cut transaction fees by 98%, has further boosted the blockchain’s scalability and appeal.

Increased network usage not only validates Avalanche’s technology but also feeds directly into AVAX demand, since part of the fees are burned, reducing supply.

AVAX price outlook

At the time of writing, AVAX trades around $30.72 with a market capitalisation of nearly $13 billion.

While the latest rally has slowed at the $30–$31 resistance zone, AVAX is still up more than 30% from September lows.

According to analysts, the token must hold support near $27.69 to maintain its bullish outlook, and a decisive break above $32.77 could open the door to further gains toward $34.93 and possibly $37.54.

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