Avalanche Treasury listed for 21 days, with the price plummeting by 73%. The unrealized loss of AVAX holdings exceeds $140 million.

BlockBeats News, July 2nd. Since its listing on Nasdaq on June 11th, Avalanche Treasury Co. (AVAT) has plummeted by 73%, dropping from $1.85 on the listing day to $0.50, becoming one of the most severely hit cases among recent crypto treasury companies.

Financial data shows that the company reported a net loss of $26.78 million in the first quarter, with a net operating capital gap of $9.06 million, mainly driven by unrealized losses in its crypto holdings. As of the end of the first quarter, the company held 13.39 million AVAX tokens, purchased at a cost of $265.3 million, but the market value has shrunk to $122.8 million, resulting in an unrealized loss of over $140 million. AVAX is currently trading around $6.7, marking a 50.8% decline year-to-date.

Of more concern is that the company's management explicitly raised "significant doubts about the Company's ability to continue as a going concern" in the first-quarter report, mainly due to uncertainty surrounding the completion of the SPAC merger at that time. The company stated that with the completion of the $675 million merger transaction with Mountain Lake Acquisition Corp., the related concerns have been alleviated, ensuring operational liquidity for the next 12 months.

AVAT completed the SPAC merger last month and debuted on Nasdaq, positioning itself as a digital asset treasury company focusing on the AVAX ecosystem. The Avalanche network has attracted over $1.02 billion in institutional funds, supported over 550 ecosystem projects, and facilitated the tokenization of over $16.5 billion in real-world assets.