Avalanche Treasury fell 16% on its first day of trading, putting pressure on the concept of crypto asset vaults

Avalanche Treasury Company officially listed on Nasdaq under the code AVAT on Thursday, but faced a sell-off on its first day of trading, with the stock price dropping 16% from the opening to close at $1.85.

The company completed its listing through a merger with SPAC Mountain Lake Acquisition, with a total transaction size of approximately $675 million, and received support from institutions such as Dragonfly, Pantera, ParaFi Capital, VanEck, Galaxy Digital, and Kraken.

Avalanche Treasury holds approximately 15 million AVAX tokens, aiming to provide investors with exposure to the Avalanche ecosystem without the need to hold the tokens directly. CEO Bart Smith stated that this strategy is not a direct bet on price, but rather a long-term investment in the potential for institutional financial restructuring.

Although the Avalanche ecosystem has attracted over 550 projects and more than $1 billion in institutional funds since its launch in 2020, its native token AVAX has recently faced significant pressure, with prices falling back to near five-year lows.

Market data shows that AVAT's first-day performance continued the generally weak trend of crypto "Digital Asset Treasury (DAT)" companies. Previous related listings such as Strategy, Bitmine, and SOL Strategies have all experienced significant pullbacks, reflecting ongoing valuation pressure for such assets in the crypto bear market environment.