AVAX’s publicly listed treasury company, Avalanche Treasury Corp (AVAT), saw its share price collapse from more than $10 to below $0.73 in just a month—wiping out 93% in a single month. In a 10-Q filing submitted to the SEC, the company admitted that “substantial doubt about the company’s ability to continue as a going concern has not been eliminated.” (Background: The spot Avalanche ETF “VAVX” was listed on 1/26, and the AVAX reserve company’s stock (AVAT) saw an 80% drop over six months.) (Additional context: MicroStrategy’s mNAV fell below 1, with Strategy’s valuation coming in under its own Bitcoin holdings.) Publicly listed AVAX reserve company Avalanche Treasury Corp (AVAT) has officially “raised the white flag” to regulators. In its SEC-filed quarterly 10-Q, the company disclosed that “substantial doubt about the company’s ability to continue as a going concern has not been eliminated”—meaning it is unsure it can make it through this year. The stock price numbers are plain and brutal. In early June, AVAT was still around $10, but then launched into a steep selloff; as of the time of writing, it is trading at $0.5. In just one month, nearly 95% of its market value rapidly evaporated. A $265 million bet cut in half, with 7.8 million AVAX locked as collateral—AVAT’s story started with a merger. The company completed its Nasdaq listing on June 11 this year through a merger deal with a blank-check company, Mountain Lake Acquisition Corp. The deal’s initial blueprint traces back to last October, when AVAT boldly announced plans to build a $1 billion-scale AVAX token treasury. But facing a continuously falling AVAX coin price. As of the end of March this year, the AVAX positions that AVAT spent approximately $265 million to buy were worth only about $123 million on the books, with an accounting loss exceeding 50%. DAT treasury model stress hits across the board: from AVAX One to MicroStrategy’s AVAT predicament is not an isolated case, but a snapshot of the systemic strain affecting the entire digital asset treasury (DAT) model. AgriFORCE Growing Systems renamed itself to AVAX One in September last year, with ambitious plans to raise $550 million and buy more than $700 million worth of AVAX. Now, the market value of AVAX One has fallen to about $43 million, down 68% year-to-date—much like AVAT’s misfortune. Even the oldest and largest players in the DAT circle are not immune to pressure. Bitcoin treasury company Strategy (MicroStrategy) recently saw its corporate mNAV drop below 1. If this metric falls under 1, it means the market is valuing the “shell company holding Bitcoin” even below the value of its directly held Bitcoin on its balance sheet—cracking the premium myth. Related report Trump embraces crypto this past year: risks of DAT treasuries, tokenized stocks, and high-leverage trades $HYPE breaks through $66 to set a new all-time high! HypeStrat’s unrealized gains top $1 billion, while Bitmine’s losses are a staggering $8 billion MicroStrategy launches a $2 billion capital framework: share buybacks with coin support—can it ease the death-spiral worry? "AVAX reserve company AVAT’s share price crashes 95% in one month, effectively telling the SEC it may not survive this year." This article was first published on 動區BlockTempo (BlockTempo—one of the most influential blockchain news media).