Avalanche Treasury Corp filed a stark disclosure with the SEC yesterday: the company has substantial doubt about its ability to continue operating. The filing arrives weeks after the largest publicly-traded AVAX treasury company completed a Nasdaq listing that immediately punished investors. Shares opened above $10 in early June, fell 27% by June 10 after deal documents surfaced, then plunged to $1.85 by June 11. Yesterday they traded below $0.73, marking a 93% monthly collapse.
The company's core problem is simple arithmetic. It paid roughly $265 million to accumulate 13.8 million AVAX tokens. By the end of March, those same tokens were worth about $123 million. AVAX has dropped 47% year-to-date and lost nearly two-thirds of its value over twelve months. The operating subsidiary burned more than $26 million in a single quarter, almost entirely a fair-value writedown on its token position.
Balance-sheet pressure compounds the slide. Avalanche Treasury pledged 7.8 million of its 13.8 million AVAX as collateral on a loan, constraining what remains to sell. Without access to full liquidity or a token price recovery, the company faces a narrowing runway.
The broader treasury gamble
Avalanche Treasury is not alone. The public-company treasury sector, which experienced brief mid-2025 exuberance, has traced a consistent downward arc. AgriFORCE Growing Systems rebranded itself AVAX One last September and announced a roughly $550 million raise to buy more than $700 million of AVAX. Anthony Scaramucci chaired its strategic advisory board, with major crypto funds backing the deal. That company now carries a market value near $43 million, down 68% year-to-date and 93% over the past twelve months.
The pattern reflects a bet that proved badly timed. Companies rushed to raise capital and accumulate AVAX during a speculative peak, then watched token prices erode and public markets punish equity holders for holding concentrated digital asset positions. Regulators now have a concrete example of what skeptics warned would happen: a publicly-listed firm built around a single cryptocurrency position reaching the edge of insolvency as the asset declines.