Overview
- Avalanche Treasury’s Nasdaq-listed shares have dropped roughly 73% since the company began trading on June 11, trading near $0.50 on July 2.
- The company reported a $26.78 million net loss for the quarter ended March 31 driven by a $46.19 million fair-value writedown on 13.78 million AVAX and a $5.06 million stAVAX impairment.
- Staking income was limited at about $2.06 million for the quarter, leaving operating revenue far too small to offset the paper losses from token-price swings.
- Management’s SEC filing flagged “substantial doubt” about the business’s ability to continue without new capital, a concern the company says was eased by its June SPAC merger and related loan proceeds that provide near-term liquidity.
- Because the firm holds roughly 13.8–15 million AVAX (about 3.5% of circulating supply), forced selling to meet obligations could amplify downward pressure on AVAX and deepen losses for both shareholders and token holders.