{"id":552691,"date":"2026-08-07T03:45:54","date_gmt":"2026-08-07T02:45:54","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=552691"},"modified":"2026-08-09T10:52:17","modified_gmt":"2026-08-09T09:52:17","slug":"avax-one-holds-88-million-in-avalanche-tokens-but-its-lender-only-wants-cash-or-bitcoin","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/avax-one-holds-88-million-in-avalanche-tokens-but-its-lender-only-wants-cash-or-bitcoin\/","title":{"rendered":"AVAX One debt amendment raises cash and Bitcoin liquidity floor to $3.5 million"},"content":{"rendered":"<p>An unnamed institutional investor amended AVAX One\u2019s legacy convertible debenture, raising the <a href=\"https:\/\/cryptoslate.com\/companies\/nasdaq\/\">Nasdaq<\/a>-listed crypto firm\u2019s minimum liquidity requirement 35-fold to $3.5 million and counting only bank cash and <a href=\"https:\/\/cryptoslate.com\/coins\/bitcoin\/\">Bitcoin<\/a> held in custody.<\/p>\n<p>The amendment, detailed in an Aug. 5 <a href=\"https:\/\/www.sec.gov\/Archives\/edgar\/data\/1826397\/000149315226036201\/ex10-2.htm\">SEC filing<\/a>, followed the July departure of CEO Jolie Kahn. The filing says her departure constituted a breach of the note\u2019s key-person covenant and that the holder waived that specified breach after AVAX One agreed to a $1.3 million partial repayment and other amended terms. The filing does not state that the holder formally declared an Event of Default.<\/p>\n<p>Kahn previously orchestrated the firm\u2019s pivot from agriculture to digital assets under the AgriFORCE moniker. Since her exit, the company\u2019s shares have fallen about 42% to $3.20.<\/p>\n\n<div class=\"cs-article-embed\">\n    <a href=\"https:\/\/cryptoslate.com\/avalanche-treasuries-line-up-1-billion-to-make-avax-part-of-the-multi-chain-finance\/\" class=\"cs-article-embed__link\">\n        <div class=\"cs-article-embed__body\">\n            <span class=\"cs-article-embed__related-reading\">Related Reading<\/span>\n            <h3 class=\"cs-article-embed__title\">Avalanche treasuries line up $1 billion to make AVAX part of the multi-chain finance<\/h3>\n        <\/div>\n        <span class=\"cs-article-embed__arrow\" aria-hidden=\"true\">\n            <i class=\"fa-light fa-arrow-up-right\"><\/i>\n        <\/span>\n    <\/a>\n<\/div>\n\n<p>This move comes amid a broader restructuring where AVAX One <a href=\"https:\/\/www.globenewswire.com\/news-release\/2026\/08\/05\/3339809\/0\/en\/avax-one-strengthens-balance-sheet-through-successful-restructuring-of-convertible-debt-facility.html\">retired<\/a> $6.8 million in outstanding principal debentures.<\/p>\n<h2>AVAX One\u2019s amended debt terms<\/h2>\n<p>Under the amended agreement, the institutional investor waived the specified key-person covenant breach after AVAX One paid $1.3 million and accepted revised financial conditions.<\/p>\n<p>The first change was a 3,400% increase in the company\u2019s minimum liquidity requirement to $3.5 million from $100,000. The amended covenant counts only bank cash and Bitcoin held in custody. AVAX tokens are excluded from this particular liquidity calculation.<\/p>\n<p>That exclusion means AVAX One\u2019s core Avalanche treasury does not count toward satisfying the test regardless of its market value. The covenant language does not indicate that AVAX One offered its AVAX as repayment or collateral and that a lender rejected it. CoinGecko <a href=\"https:\/\/www.coingecko.com\/en\/treasuries\/companies\/avax-one\">data<\/a> shows the company holds nearly 14 million AVAX tokens worth about $88 million.<\/p>\n\n<div class=\"cs-article-embed\">\n    <a href=\"https:\/\/cryptoslate.com\/avalanche-foundation-pushes-avax-price-to-seven-month-high-with-1-billion-fundraising-talks\/\" class=\"cs-article-embed__link\">\n        <div class=\"cs-article-embed__body\">\n            <span class=\"cs-article-embed__related-reading\">Related Reading<\/span>\n            <h3 class=\"cs-article-embed__title\">Avalanche Foundation pushes AVAX price to seven-month high with $1 billion fundraising talks<\/h3>\n        <\/div>\n        <span class=\"cs-article-embed__arrow\" aria-hidden=\"true\">\n            <i class=\"fa-light fa-arrow-up-right\"><\/i>\n        <\/span>\n    <\/a>\n<\/div>\n\n<p>AVAX One also faces a 180-day deadline from Kahn\u2019s departure to appoint a permanent CEO deemed acceptable to the lender. Peter Wylie Jr. currently serves as interim chief executive.<\/p>\n<p>The agreement also raised the remaining debenture\u2019s principal to $8.47 million from $7.7 million before applying the $1.3 million payment.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-552727\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/08\/exec-eaa11e29-0b30-48a7-be5d-f3fd92684a1c.png\" alt=\"Timeline of AVAX One\u2019s key-person covenant waiver showing the note step-up, required payment, blocked cash and 35-fold cash-or-Bitcoin liquidity floor\" width=\"721\" height=\"1315\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/08\/exec-eaa11e29-0b30-48a7-be5d-f3fd92684a1c.png 929w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/08\/exec-eaa11e29-0b30-48a7-be5d-f3fd92684a1c-165x300.png 165w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/08\/exec-eaa11e29-0b30-48a7-be5d-f3fd92684a1c-562x1024.png 562w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/08\/exec-eaa11e29-0b30-48a7-be5d-f3fd92684a1c-768x1400.png 768w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/08\/exec-eaa11e29-0b30-48a7-be5d-f3fd92684a1c-842x1536.png 842w\" sizes=\"(max-width: 721px) 100vw, 721px\" \/><\/p>\n<p>The filing did not explain the $770,000 increase. AVAX One said the broader restructuring included repayment premiums, but did not directly link them to the adjustment. After the payment, about $7.42 million remained outstanding.<\/p>\n<p>The lender also accelerated its capital recovery by increasing monthly redemptions to one-tenth of the original principal from one-twenty-fifth.<\/p>\n<p>Finally, the accelerated conversion price was reduced to 82.5% from 85% of a benchmark tied to the three lowest trading prices over the previous 10 trading days.<\/p>\n<p>The deeper discount could allow the lender to receive more shares when converting the debt, increasing <a href=\"https:\/\/cryptoslate.com\/strategy-used-300-million-mstr-dilution-backstop-bitcoin-buying-machine\/\">potential dilution for existing investors.<\/a><\/p>\n<p>An AVAX One spokesperson said:<\/p>\n<blockquote><p>\u201cTo clarify, AVAX One did not experience a default under its debt agreements.<\/p>\n<p>There was a technical breach of our covenants following our recent management transition. However, we avoided an event of default by proactively negotiating with and coming to new, agreeable terms with the relevant investors.<\/p>\n<p>Under the new terms, we intentionally excluded our AVAX tokens from the liquidity requirements. Building and maintaining an AVAX treasury is core to our business strategy, and we would not want to put these assets at risk.<\/p>\n<p>All of these measures were designed to protect our core competency and benefit our shareholders.\u201d<\/p><\/blockquote>\n<p><em><strong>Update \u2014 Aug. 9, 2026:<\/strong> This article has been updated to clarify the scope of AVAX One\u2019s cash-and-Bitcoin liquidity covenant, distinguish a key-person covenant breach from a formally declared Event of Default, and include a response from an AVAX One spokesperson.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The waiver required a $1.3 million payment, increased the remaining note and left $5.437 million under lender control.<\/p>\n","protected":false},"author":1264,"featured_media":552845,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[80573,77968,79849,6849],"tags":[81073,76769,77433,75195],"prediction_market_topic":[],"post_folder":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.9 (Yoast SEO v21.9.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>AVAX One debt amendment raises cash and Bitcoin liquidity floor to $3.5 million<\/title>\n<meta name=\"description\" content=\"AVAX One\u2019s amended legacy debenture raises minimum cash and Bitcoin liquidity to $3.5 million, while the company says AVAX was intentionally excluded from the calculation.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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