Avalanche Treasury Co. Says Shares Plunge 73% After Raising Doubt on Operations
Avalanche Treasury Co. disclosed Wednesday that it has 'substantial doubt' about its ability to continue operating, sending its shares down 73% since listing via SPAC merger on June 11. The digital asset treasury firm clarified in a statement that the going-concern warning reflects its financial conditions during the first quarter, prior to the completion of the SPAC merger last month. The company added that the merger provides sufficient capital and resources to sustain operations for the next 12 months.
Avalanche Treasury Co. manages a portfolio centered on the $AVAX digital asset, which has experienced notable price volatility in recent trading sessions. The stock debuted at $10 per share before sliding to roughly $2.70, reflecting steep selling pressure from investors reassessing the firm's near-term liquidity. The going-concern disclosure marks one of the sharpest debut declines for a newly public digital asset treasury firm.
From the sources (2 posts)
@theblockcoTHE BLOCK: Avalanche Treasury Co.'s stock has plunged 73% since its June 11 debut. The $AVAX digital asset treasury firm has "substantial doubt" about its ability to continue. $AVAT
@theblockcoClarification: AVAT's "substantial doubt" on future operations reflects its Q1 financial conditions. Its SPAC merger, completed last month, provides capital and resources for the next 12 months, the company said.