Avalanche Treasury Corp approved a $10 million share repurchase program after reporting a $44.7 million loss in the second quarter, which included $35.7 million in AVAX-related losses, according to the August 26 quarterly filing.

The filing disclosed that the loss consisted of fair‑value changes, realized digital‑asset losses and impairments. The company held 15,312,363 AVAX tokens with a reported fair value of $99,989,818 as of June 30. Staking generated $1.5 million of revenue in the quarter and $3.6 million in the first half of 2026, while about $15.2 million in one‑time costs were recorded for completing its business combination, according to the filing.

Management said the repurchase program is intended to create shareholder value amid a perceived market disconnect. The $35.7 million loss reflects accounting adjustments and realized losses, distinguishing it from cash expenditure during the period. Fair‑value and impairment charges can affect reported earnings without an equivalent cash outflow. Nasdaq resolved a $35 million market‑value compliance matter after the company reported $83.8 million of stockholders’ equity, meeting the alternative threshold of at least $2.5 million required under Rule 5550(b)(2). The exchange granted a compliance period through February 2, 2027, and the filing addresses only the market‑value issue, leaving the bid‑price compliance matter unresolved.

The filing indicates that earnings and the balance sheet remain heavily exposed to AVAX price movements, and its compliance status with Nasdaq is ongoing.