🔺 Avalanche have spent years building an exceptionally strong technical foundation and now they are building an even stronger financial foundation, here's why I am bullish about the new Avalanche Treasury Company (AVAT) @avat_co due to be listed on the NASDAQ in Q1 2026 :
1. Unlike ETF's a DAT is able to use onchain strategies such as earning staking rewards and investing in the ecosystem to give investors more than just passive asset exposure.
2. AVAT will receive OTC tokens from The Avalanche Foundation at a 60% discount, this discount allows the DAT to advertise with a desirable mNAV meaning that investors want to buy the stock. This allows the DAT to then raise more funds to either market buy Avax or buy discounted from the foundation to keep the mNAV attractive or a combination of both.
3. All $AVAX that the AVAT receives from the Avalanche Foundation is locked for 5 years. Additionally the Foundation can't sell tokens at a discount to any other entity for the first 18 months.
4. The Avalanche Foundation will have USD funds in their treasury to use for funding projects, running / growing the business and other onchain activities.
5. The Avalanche Treasury Company has a very talented and experienced group of people running it, CEO @gbartsmith is leading the company with his many years of experience as CEO of Susquehanna Crypto. Ava Labs founder Emin Gün Sirer will serve as strategic advisor and Chief Business Officer John Nahas will join the public company board, providing direct access to the ecosystem's architects.
I'm bullish on the future of Avalanche🔺
I've attached a few clips below of AVAT CEO Bart Smith and a good article from Business Wire👇
@SandmanAvax@Stupifff HODL is always the answer; fundamentals haven't changed, crypto is going mainstream, and I believe AVAX is a big winner. Just stay strong 💪🏼
@AlexPancakesNFT@j0eferrara It is OTC but the main purpose was to seed it below market price to get an attractive mNAV so they could raise more external capital to buy more AVAX.
@JustnThePhotog Look on the bright side, both DATs absorbed the sell pressure from foundation in the near term at least, plus they plan to raise external capital with their below 1 mNAV to acquire more AVAX
@tzmljm@hmmxavier@Patrick_DefiGuy TBH, they have to, it is very expensive to run a cutting edge blockchain company, especially when they are in the US. But I do think DAT is net positive long term.
@hmmxavier@Patrick_DefiGuy Hopefully sell pressure from foundation would subside, both DAT announced are basically fire sale of $AVAX by the foundation in disguise if you look through SEC filings.
@VladTheInflator Either way the left is gonna blame Trump for everything, if he deports them, let’s see how long until the left is gonna whine about Trump hurting American businesses, it’s just pointless to argue with the left.
@Ashcryptoreal The real problem is regulation, crypto has democratised everything, innovations and novel ideas not getting adopted by mainstream, retail with nowhere to make money resort to gambling while institution waiting for clarity
@kolyboy@hmmxavier@AvalancheFDN Adoption is adoption, do you expect institutions to not test out other chain ? This is where tech will win the race, not money and recognition.