Loan & DebtJul 16, 2026, 04:27 PM
Avalanche Treasury secures $10M digital currency loan
AI Summary
Avalanche Treasury Corp (AVAT) entered into a Master Digital Currency Loan Agreement with Galaxy Digital LLC, securing a $10 million Term Loan. The loan, maturing on January 10, 2027, carries a borrow fee of 10.5% per annum. AVAT will pledge approximately 2.9 million AVAX as collateral, held in a segregated account with Anchorage Digital Bank N.A., and intends to use the proceeds to pay down existing debt.
Key Highlights
- Avalanche Treasury Corp signed a Master Digital Currency Loan Agreement with Galaxy Digital LLC.
- Secured a $10 million Term Loan with a maturity date of January 10, 2027.
- The Borrow Fee for the loan is 10.5% per annum.
- Approximately 2.9 million AVAX will be pledged as collateral, based on an Initial Collateral Level of 180%.
- Collateral will be held in a segregated custody account with Anchorage Digital Bank N.A.
- Margin Call Rate is 170%, Urgent Margin Call Rate is 165%, and Margin Refund Rate is 190%.
- No more than 75% of the collateral may be staked at any given time.
- Proceeds from the loan will be used to pay down $10 million of existing debt.
Price Impact
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