Avalanche Treasury Corporation

Good day and welcome to the Avalanche Treasury Company second quarter 2026 conference call. Today's conference is being recorded. At this time, I would like to turn the conference over to Bart Smith, CEO. Please go ahead.

Hello, everyone, and thank you for joining us for AVAT's second quarter 2026 earnings call. This is an important quarter for our company, marking our first earnings report since completing our business combination and beginning to trade publicly on NASDAQ. I wanted to start by addressing the market environment we've been operating in and why, despite what has been a challenging period for crypto, we've remained incredibly excited about the opportunity ahead of ABAT. We successfully completed our business combination in June and began trading as ABAT. Since last October, digital asset prices have been under pressure and we've seen that extend to digital asset companies across the sector as well. To put that environment into perspective, since October 1st to our last filing last Wednesday, Bitcoin is down approximately 50%, with broad digital asset indices down even more. We've seen similar pressure across digital asset-related public companies. Over that same time period, Coinbase is down approximately 58%, Strategy is down approximately 73%, and Bitmine is down approximately 64%. More recent entrants into the public markets have faced similar pressure, with BitGo down approximately 70% from its IPO price and Securitize down approximately 53% from its listing price. We think that context is important. The pressure we've experienced as becoming a public company has occurred against the backdrop of a broad and significant repricing across digital asset and digital asset related companies. There are a few things that we believe have contributed to that environment. First, geopolitical instability and uncertainty around global financial policy have created an environment of higher inflation and higher interest rates, which has historically created headwinds for crypto and other macro sensitive assets. Second, AI and data center infrastructure have absorbed an enormous amount of investor mindshare and growth capital. A significant amount of capital has gone towards funding that infrastructure build out, and we believe that has left crypto and blockchain infrastructure somewhat in the shadows for this moment in time. and the third, digital asset legislation in Washington has taken longer than many of the industry expected. The Clarity Act remains unresolved, adding another element of uncertainty to broader digital asset markets. But when we look beyond the price, we see a very different picture. What's interesting about this cycle is that while prices have been challenging, blockchain adoption has been extremely active and alive. We have been involved in many discussions with financial and consumer institutions around education, and planned adoption of blockchain technology. The conversations are no longer exploratory, but rather focused on implementation and planning various phases of adoption. We're seeing stable coins continue to grow in their acceptance as well as their issuance. The tokenization of equities is no longer being debated, but rather announcements are being made weekly with concrete plans for the future. We're seeing private credit, money markets and other real world assets move on chain as the efficiency of the blockchain are understood, We're seeing traditional financial markets moving towards 24-hour continuous trading instead of the workweek trading hours. This upgrade is also causing systems to be examined to fully support around-the-clock trading. The existing financial infrastructure was not designed for that world. Most of the systems cycle at the end of the trading day and do not comprehend the concept of a weekend. We believe the next generation of financial markets will require a new infrastructure built on blockchain, and we believe Avalanche is uniquely suited to compete and ultimately lead that vertical. Avalanche is the blockchain that has the privacy, flexibility and scalability that institutions will require. So when we look at the market today, we believe that there is a disconnect between what is being reflected in digital asset prices and the amount of building, production activity and adoption taking place both here in the United States and around the world. The rebound that occurred since last week shows how quickly sentiment can turn in this emerging technology. While there's been a crypto winter in digital asset prices, it has been a crypto summer in institutional adoption. We believe that it is just a matter of time until market sentiment catches up to all the fundamental growth and adoption. We're announcing today the board has approved a $10 million share repurchase plan of ABAC stock over the next 12 months. We believe this is one of the tools we have at our disposal to create shareholder value while this perceived disconnect exists in the market. I will now pass it over to our Chief Financial Officer, Sean Ostrower, to walk through our Q2 financial update. After, I'm going to spend some time covering the macro environment we're operating in and what we're seeing across Avalanche and why we're so excited about the opportunities ahead for the next 12 months.

Thanks, Bart. As Bart mentioned, the headline from this quarter was that on June 11th, we completed our business combination and began trading on NASDAQ under the ticker AVAT. This is our first quarter reporting as a public company. Our treasury, the core of our strategy, held approximately 15.3 million AVAX at quarter end, roughly $100 million in carrying value at quarter end prices. And that treasury is working for us. Staking revenue net of fees was $1.5 million in the quarter and $3.6 million for the first half of the year. While we reported a net loss of $44.7 million, or $1.54 per share, the context around that loss is important. The overwhelming majority of it does not reflect the cost of running this business. Roughly $35.7 million of losses came from market-driven losses on our AVAX holdings, fair value changes, realized losses, and impairments, reflecting the decline in the price of AVAX during the quarter. Another $15.2 million was one-time transaction costs to complete the business combination. By comparison, our core general and administrative expenses were $3.5 million. So the way to think about the quarter is this. The go public work is done. The one times costs that came with it are behind us. Our treasury is staked and generating recurring yield, and we are focused on what we set out to do. Accumulate AVAX, invest in the Avalanche ecosystem with our time, efforts, and funds, and help our investors gain exposure to the institutional adoption of Avalanche. With that, I'll hand it back to Bart.