Avalanche Treasury Approves $10 Million Share Buyback Despite $44.65 Million Loss

Avalanche Treasury (AVAT) recorded a net loss of $44.65 million (approximately 61.8 billion KRW) in the second quarter. The board approved a plan to buy back $10 million (approximately 13.8 billion KRW) worth of Class A common stock. As of June 30, the net loss per share was reported at $1.54. The primary cause of the loss was the fluctuation in the value of the held Avalanche, with a fair value fluctuation loss of $14.59681 million (approximately 20.2 billion KRW), a realized loss of $10.019063 million (approximately 13.9 billion KRW), and an impairment loss of $11.10549 million (approximately 15.4 billion KRW). The total of these three items amounted to approximately $35.7 million (approximately 49.4 billion KRW), indicating that a significant portion of the quarterly net loss stemmed from the accounting treatment of the held tokens. Merger-related costs also impacted performance, with related transaction costs totaling $15.213769 million (approximately 21 billion KRW). The staking revenue for the second quarter was $1.545470 million (approximately 2.1 billion KRW), and the cumulative staking revenue for the first half of the year was $3.602544 million (approximately 5 billion KRW). As of June 30, the amount of Avalanche held was approximately 15.3 million, with a holding value estimated at around $100 million (approximately 138.3 billion KRW). CEO Bart Smith noted that the second quarter marked an important milestone with the completion of the merger and the commencement of trading on Nasdaq.

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