Avalanche Treasury Corp, the largest publicly traded company holding AVAX as a corporate treasury asset, told regulators its ability to continue as a going concern is in doubt after its stock collapsed 93% over the past month.

The Nasdaq-listed company, ticker AVAT, disclosed the warning in a 10-Q filing with the SEC, stating that “substantial doubt about the Company’s ability to continue as a going concern is not alleviated.” Shares traded above $10 at the start of June, closed at $1.85 on June 11 following its Nasdaq debut, and fell into penny-stock territory below $0.73 by June 29, wiping out 93% of their value in a month.

AVAX Bet Underwater

AVAT built its position by merging with blank-check company Mountain Lake Acquisition Corp in a deal that closed with its Nasdaq listing on June 11, part of a plan announced last October to build what the company called a $1 billion pile of AVAX tokens. The company paid roughly $265 million to acquire its AVAX, but the position was worth about $123 million by the end of March, more than half underwater. AVAX has lost 47% of its value year to date and traded near $6.72 on Wednesday, per CoinGecko.

The operating subsidiary lost more than $26 million in the first quarter, almost entirely a fair-value writedown on its AVAX holdings. AVAT has pledged roughly 7.8 million of its 13.8 million AVAX as collateral on a loan, leaving a smaller unencumbered buffer against further price declines. Its market capitalization has fallen to less than $30 million, according to Yahoo Finance.

Treasury Model Under Strain

AVAT’s collapse adds to a string of digital-asset treasury companies that have cratered since a wave of similar vehicles launched in 2025. AgriFORCE Growing Systems rebranded as AVAX One last September with plans to raise $550 million to buy more than $700 million of AVAX; its market value has since fallen to about $43 million, down 68% year to date.

The Defiant reported in June that even Strategy, the largest and longest-running Bitcoin treasury company, saw its enterprise mNAV drop below 1 for the first time, and covered StablecoinX’s Nasdaq debut as the first public ENA treasury vehicle, part of the same corporate-treasury trend now facing pressure across multiple tokens.

Avalanche Foundation and Ava Labs, the core organization behind the Avalanche network, have made no public statement on AVAT’s going-concern disclosure or its stock decline as of publication.