AVAX One Regains Nasdaq Compliance After 12-for-1 Reverse Stock Split

AVAX One, a digital-asset treasury company that holds Avalanche's AVAX as a strategic asset, has regained compliance with Nasdaq listing requirements after a reverse stock split.

Decrypt reported on July 9 that AVAX One had received notice from Nasdaq that it had regained compliance with the exchange's minimum bid price requirement under Listing Rule 5550(a)(2). The rule requires a closing share price of at least $1. The company met the standard after its shares closed above $1 for 10 consecutive trading days from June 15 through June 29.

AVAX One carried out a 12-for-1 reverse stock split on June 15 to satisfy the listing requirement. The move reduced shares outstanding to about 7.7 million from about 92.3 million.

"We are pleased to have regained compliance with Nasdaq's minimum bid price requirement," interim Chief Executive Officer Pete Wylie said. He added that the company would now focus on executing its strategy to drive growth and improve profitability.

Wylie, previously the company's chief operating officer, became interim CEO last week after former CEO Jolie Kahn stepped down. The board is in the process of appointing a permanent chief executive.

AVAX One operates three businesses: an Avalanche treasury strategy, Bitcoin mining and artificial intelligence infrastructure. It holds about 14 million AVAX and is generating a staking yield of about 6%. The company also operates Bitcoin mining facilities in Alberta, Canada, and Ohio.

It is also reviewing plans for AI infrastructure projects ranging from 5 megawatts to 50 megawatts. The company aims to target demand for enterprise inference, edge computing and regulated industries that large hyperscale data centers have not served.

AVAX One is among a group of crypto treasury companies modeled on Strategy, the corporate Bitcoin holder. Since the second half of last year, however, weakness in the digital-asset market has left many treasury companies trading at market values below the value of the assets they hold.

AVAX One has a market capitalization of about $40.5 million, below the roughly $95 million value of its AVAX holdings. Its shares rose 3.6% to close at $5.43 on the day, though the stock is still down about 70% this year. Avalanche traded at $6.71, up more than 4% over the past day, but remained about 50% below its level at the start of the year and about 95% below its 2021 peak.