AVAX Reserve Company's AVAT stock price plummeted 95% in a single month, self-disclosed to SEC that it may not survive this year.

AVAX publicly listed treasury company Avalanche Treasury Corp (AVAT) saw its share price crash from above $10 to below $0.73 in just one month, evaporating 93% in a month. In its 10-Q financial report filed with the SEC, the company admitted that “substantial doubt about the company’s ability to continue as a going concern has not been eliminated.”
(Background: Avalanche spot ETF “VAVX” began trading on 1/26, and the AVAX reserve company’s share price fell 80% in six months)
(Background supplement: MicroStrategy’s mNAV breaks below 1, and Strategy’s valuation is below its own Bitcoin holdings)

The publicly listed AVAX reserve company Avalanche Treasury Corp (AVAT) has officially waved a white flag to regulators. In its 10-Q quarterly report filed with the SEC, the company disclosed that “substantial doubt about the company’s ability to continue as a going concern has not been eliminated,” meaning the company is uncertain whether it can make it through this year.

The stock price numbers are straightforward. In early June, AVAT’s share price was still around $10, but it immediately entered a period of sharp decline; as of the time of writing, it is reported at $0.5. In just one month, nearly 95% of its market value was rapidly wiped out.

A $265 million bet halved—7.8 million AVAX locked as collateral

AVAT’s story begins with a merger. The company completed its Nasdaq listing this year on June 11 through a merger transaction with blank-check company Mountain Lake Acquisition Corp. The initial blueprint for this deal can be traced back to last October, when AVAT loudly declared that it would build an AVAX token treasury with a scale of $1 billion.

However, faced with the continuously falling price of AVAX, the AVAX purchased by AVAT for approximately $265 million was worth only about $123 million as of the end of March this year, with paper losses already exceeding 50%.

DAT treasury model under pressure across the board: from AVAX One to MicroStrategy

AVAT’s predicament is not an isolated case, but a snapshot of the systemic pressure bearing down on the entire Digital Asset Treasury (DAT) model.

AgriFORCE Growing Systems changed its name to AVAX One last September. It had lofty plans to raise $550 million and buy more than $700 million worth of AVAX. Today, AVAX One’s market cap has fallen to about $43 million, down 68% since the beginning of the year—sharing the same fate as AVAT.

Even the oldest and largest player in the DAT circle can’t escape the pressure. Bitcoin treasury company Strategy (MicroStrategy)’s corporate mNAV has recently fallen below 1. If this indicator is below 1, it means the market assigns a valuation to the “shell company holding Bitcoin” even lower than the value of the Bitcoin it directly holds on its own balance sheet—thus shattering the premium myth.