Avalanche Treasury Corp's stock price plummeted 93%, warning the SEC that the company may not be able to continue operations

According to The Defiant, Nasdaq-listed Avalanche Treasury Corp (AVAT) warned in its SEC quarterly report of significant doubts about its ability to continue as a going concern. The company's stock price has dropped 93% over the past month, falling from over $10 in early June to below $0.73 on June 29. AVAT went public on June 11 through a merger with Mountain Lake Acquisition Corp, planning to establish a $1 billion AVAX position, but the approximately $265 million cost of purchasing AVAX has now shrunk to about $123 million. AVAX has fallen 47% this year, with a Wednesday quote of about $6.72. AVAT has staked about 7.8 million of its 13.8 million AVAX as collateral for loans, and its operating loss in the first quarter exceeded $26 million, almost entirely due to the impairment of the fair value of its AVAX holdings. AVAT's market capitalization has fallen to less than $30 million.