AVAX Price Soars As Avalanche Eyes $1B Treasury Plan

Avalanche Treasury Plan Boosts AVAX Price

The AVAX price has seen a significant uptick following Avalanche’s strategic announcement about its $1 billion treasury plan. The company intends to go public in the US by 2026 Q1 and acquire over $1 billion in its native tokens. This move is expected to boost the token's value and further establish the platform's presence in the cryptocurrency market.

Avalanche to Go Public

Avalanche Treasury Co. is set to merge with Mountain Lake Acquisition Corp. in a $675 million deal. The move is part of the crypto company’s aim to list on Nasdaq in Q1 2026, under the ticker symbol “AVAT,” and create a major public investment vehicle for AVAX tokens.

The firm is also planning to invest $1 billion in the Avalanche coin to establish itself as a treasury company. This move makes it the second platform to adopt the asset as a reserve asset. As per the announcement, the blockchain firm will buy these massive amounts of cryptocurrencies after public listing, with an initial funding of around $460 million in reserve assets. In an X post, the team noted,

“Introducing Avalanche Treasury Co: the premiere way to get regulated AVAX exposure. We’re the institutional growth engine for the AVAX ecosystem, with an exclusive relationship with...itself.”

Aims Beyond Passive Accumulation

Notably, the company intends to expand its vision beyond passive accumulation, stated CEO Bart Smith. He noted, “Many institutions have difficulty accessing digital assets or are limited to holding native tokens without yield or ecosystem integration. We created Avalanche Treasury Co. to offer something we believe will be more valuable than passive exposure.”

As part of this vision, the team will conduct additional activities to generate revenue beyond “passive accumulation.” They will utilize funds for strategic initiatives, including targeted protocol investments, tokenization of real-world assets and stablecoins for enterprises, and setting up their own validator infrastructure.

Price Surges

In response to the development, the AVAX price saw a significant uptrend, exhibiting a notable recovery from the recent downturn. Currently priced at $30.80, the token is up by 3% in a day and a massive 30% in a month. But it is still down by 1.28% over the past week.

This positive sentiment is also reflected in the 24-hour trading volume, which is up by 35%, currently at $1.24 billion. As the traders’ interest in the altcoin is growing, it could substantially influence the price’s potential rally. As per CoinCodex prediction, the altcoin will hit $35 in 2025 and an ambitious $117 in 2026.