Avalanche Treasury Sells 2.08M Locked AVAX to Avalanche Foundation

Avalanche Treasury Corporation — a Nasdaq-listed company (ticker: AVAT), separate from the Avalanche Foundation itself — sold 2,082,371.607744 AVAX tokens to Avalanche (BVI), Inc., identified in the company's own SEC filing as "the Foundation," for $15 million on September 23. The transaction, disclosed in a Form 8-K filed September 29 (SEC accession no. 0001104659-26-111940), closed in three tranches. The tokens sold were "the longest dated locked AVAX tokens held by the Company," the filing states, and the sale "reduced the Company's weighted average duration of locked AVAX tokens to approximately 16.5 months." Avalanche Treasury said it expects to use the proceeds "to reduce debt and for general corporate purposes."

Avalanche Treasury Corporation is not a subsidiary or rebrand of the Avalanche Foundation — it is an independently Nasdaq-listed company built to hold AVAX. Incorporated in Delaware on September 22, 2025, it describes itself in its most recent quarterly filing as "an operating company focused exclusively on business lines relating to Avalanche and AVAX," built around accumulating AVAX for public-market investors.

The two sides of the September 23 trade are not strangers, though. SEC filings identify the Foundation as Avalanche (BVI), Inc. together with a Cayman affiliate, and that same Foundation supplied Avalanche Treasury with its initial AVAX position. Under an October 1, 2025 Token Sale Agreement described in an earlier 10-Q, the Foundation sold AVAX to the company at a 60% discount in exchange for $50 million in cash and USDC plus $30 million paid in 3,000,000 shares of the company's Class A stock — giving the Foundation an equity stake in Avalanche Treasury. The same agreement gave the Foundation a right to designate a board member at the company for five years and a five-year right of first refusal on the company's AVAX sales above certain thresholds. Neither the 8-K nor the 10-Q states why the Foundation chose to buy back this particular tranche now, or what it intends to do with the tokens — those questions stay open.

Descout has previously covered the Foundation's plans to capture more value for AVAX and a stretch of institutional moves onto Avalanche.