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Avalanche Treasury, a company whose value is tied directly to its holdings of $AVAX — the native token of the Avalanche blockchain — has watched its stock fall 73% from the price at which it debuted.
By the end of the first quarter, the company's own management had raised "substantial doubt" about its ability to continue operating.
What Avalanche Treasury Is, and Why the Structure Matters A crypto treasury company is built around a simple premise: raise capital, convert it into a digital asset, and let shareholders gain exposure to that asset through stock rather than holding the token directly.
The model gained mainstream attention when companies began doing it with Bitcoin, and it has since been replicated with other tokens, including AVAX. The structure is straightforward in a rising market.
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