Nasdaq has given Avalanche Treasury Corporation until Feb. 2, 2027, to fix two listing deficiencies. The company's stock and market value have both sat below Nasdaq's minimum thresholds for 33 consecutive business days, and a reverse stock split alone would not fix both problems.
Avalanche Treasury Corporation (AVAT) has until Feb. 2, 2027, to clear two Nasdaq listing deficiencies after its share price and market value fell below required thresholds. Nasdaq notified the company last week that AVAT's closing bid price had remained below $1 and its market value of listed securities had stayed below $35 million for 33 consecutive business days.
With AVAT trading around $0.32 as of press time, its share price would need to more than triple to reach the $1 threshold. However, that alone would not resolve the second deficiency, which requires its market value of listed securities to recover to at least $35 million.
Shares keep trading during the remediation period
The notices do not immediately affect AVAT's listing, and its shares continue trading on the Nasdaq Capital Market. Instead, the company must keep each measure above its respective threshold for at least 10 consecutive business days before Nasdaq confirms compliance. AVAT has not disclosed a definitive remediation plan.
Meanwhile, the two deficiencies could require different solutions. AVAT cited a reverse stock split as one option for the bid-price shortfall and could qualify for another 180-day period under certain conditions. A reverse split, though, would not by itself lift the aggregate market value Nasdaq measures under the second test, leaving AVAT needing a recovery in its equity valuation or another route to compliance.
A treasury built on staked AVAX
AVAT emerged from a combination with special-purpose acquisition company Mountain Lake Acquisition Corp. in a transaction valued at more than $675 million. The company reported holding more than 15 million AVAX, including more than 7.2 million staked tokens. Some of its holdings back a $25 million FalconX loan. A separate $10 million Galaxy Digital facility is backed by other holdings.
AVAT was pitched as more than a vehicle for accumulating AVAX. Its strategy instead involves putting capital to work across the Avalanche ecosystem through staking, infrastructure and strategic investments.
Other crypto treasuries face the same test
AVAX One, another Avalanche-focused treasury company, faced similar Nasdaq pressure earlier this year and carried out a 1-for-12 reverse stock split in June after falling below the exchange's $1 minimum bid requirement. It subsequently regained compliance.
The case fits a broader pattern of newer crypto treasury companies trying to differentiate themselves from vehicles whose fortunes largely track a single token, even as weaker crypto markets test that distinction. Last week, Trump Media, Crypto.com, and Yorkville scrapped a planned $6.42 billion CRO treasury deal, citing market conditions and shifting business and stakeholder priorities.
Source: CryptoSlate
Trading involves risk.
Risk Disclaimer
