AVAX One Lender Cracks Down on Digital Asset Treasury Company
Avalanche Treasury Company AVAX One faces intense financial pressure after its lender imposed drastic conditions following the departure of CEO Jolie Kahn. The institutional investor raised the minimum liquidity requirement by 35 times, from $100,000 to $3.5 million, and now only accepts bank cash or Bitcoin as collateral.
The current value of AVAX One's core Avalanche treasury is approximately $88 million, but this no longer counts towards the new threshold due to the lender's strict requirements.
AVAX One has also been given a 180-day deadline to appoint a permanent CEO acceptable to the lender. The company's shares have fallen by about 42% since Kahn's departure in July, now trading at $3.20.