The price of Avax, the native token of the Avalanche blockchain, jumped after the newly formed company announced plans to purchase more than $1 billion in tokens in the US.
The company’s Avalanche Treasury Co. said Wednesday that it will merge with Special Purpose Acquisition Corp. with a deal worth more than $675 million.
The merged company will be listed in NASDAQ in the first quarter of 2026 under the ticker symbol “Avat” subject to regulatory and shareholder approval.
Emin Gün Sirer, founder and CEO of avalanche blockchain developer Ava Labs, will join the company as an advisor.
The business will become the second so-called financing company focused on avalanches, and will join a flock of companies competing for the purchase and retention of cryptocurrency this year.
Avalanche Treasury Co. Eyes is a billion dollar Avax Holdings
Avalanche Treasury Co. said there is a “exclusive relationship” with the Avalanche Foundation, an organization that supports blockchain.
The treasury company plans to own more than $1 billion in avax after it is made public next year, and said its initial capital raise would “have approximately $460 million in financial assets.”
Avax rose shortly after the announcement to an intraday high of $31.32. According to Coingecko, it has since cooled down, but has risen 2.3% over the past 24 hours.
Crypto-centric ventures and companies support mergers such as Dragonfly, Vaneck, Falconx, Monarq, Galaxy Digital, Pantera Capital, Coinfund, Kraken.
Major Crypto Market Maker Bart Smith, former CEO of Susquehanna Crypto, has been appointed CEO of Avalanche Treasury Co.
Avalanche Treasury Co. is set to become active on-chain
The company said it plans to carry out additional activities to generate revenue “beyond passive accumulation” and also operate on the avalanche blockchain.
It added that it will deploy funds through “targeted protocol investments,” supporting companies that represent real assets and stablecoins, and establishing their own validator infrastructure.
“Many agencies are either difficult to access digital assets or are limited to holding native tokens without yield or ecosystem integration,” Smith said. “We created the Avalanche Treasury Co. to provide something that appears to be more valuable than passive exposure.”
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The company announced that it would join something like Agriforce Growing Systems and rebrand as Avax One on September 22nd and purchase $700 million worth of Avax.
The company aims to offer a “discount” compared to tokens
Avalanche Treasury Co. said it will “start an 18-month prioritization of your first Avax token purchase at a discount to market price and sales to Avalanche Foundation’s digital asset financing company.”
The company aimed to be a multiple of its net asset value (MNAV) of 0.77, advertising it as “a 23% discount compared to buying Avax directly.”
However, analysts at Nydig recently argued that MNAV metrics are misleading because they do not adequately represent the company’s financial position.
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