Nasdaq gives Avalanche Treasury until Feb. 2, 2027 to comply

Nasdaq notified Avalanche Treasury Corporation (AVAT) that the company has until Feb. 2, 2027 to cure two listing deficiencies after its closing bid price and the market value of its listed securities remained below required thresholds for 33 consecutive business days. The exchange requires each metric to be above the minimum for at least 10 consecutive business days before declaring the company compliant.

The notices do not remove AVAT from the Nasdaq Capital Market. Its shares continue to trade while the company addresses the shortfalls. At the time of the notice AVAT shares were trading around $0.32, meaning the per-share price would need to more than triple to meet Nasdaq’s $1 minimum bid-price test.

A separate market-value test compares the aggregate market value of listed securities to a $35 million standard. A reverse stock split raises the per-share price by reducing outstanding shares but does not raise the aggregate market value that Nasdaq uses for that test. Avalanche Treasury has cited a reverse split as one potential option and may qualify for an additional 180-day remedial period under certain conditions, but it has not published a definitive remediation plan or outlined other steps such as new financing, asset sales, or strategic transactions.

AVAT was formed through a business combination with Mountain Lake Acquisition Corp. that was presented as a transaction valued at more than $675 million. The company reported holdings of more than 15 million AVAX tokens, including over 7.2 million that are staked. Some assets are pledged in financing arrangements, including a $25 million facility with FalconX and a $10 million facility with Galaxy Digital. The company’s stated strategy focuses on deploying capital in the Avalanche ecosystem through staking, infrastructure and strategic investments rather than passively tracking a single token.

Other treasury vehicles have faced similar Nasdaq pressure. Earlier this year another Avalanche-focused treasury completed a 1-for-12 reverse split after its price fell below the exchange’s $1 threshold and later regained compliance. Weakness in crypto markets has also led to cancellations of several planned treasury and token-backed deals over the past year.

If AVAT fails to meet either the bid-price or market-value test for the required consecutive trading days and does not qualify for further remedial relief, Nasdaq could move to delist the shares.