Avax One Technology Ltd. Common Shares (NASDAQ:AVX) reported second-quarter revenue of $2.8 million, up from approximately $500,000 a year earlier, as staking rewards from its Avalanche digital-asset treasury became the company’s largest revenue source.
The company recorded a net loss of $35.1 million, or $4.41 per diluted share, for the quarter ended June 30, compared with a net loss of $8.1 million in the prior-year period. The reported loss included $33 million in non-cash charges, including a $29.8 million unrealized loss from changes in the market value of digital assets, a $2.6 million impairment related to Treehouse liquid staking tokens, and $600,000 in share-based compensation and depreciation expense.
Avalanche Treasury Drives Revenue
Of the company’s $2.8 million in second-quarter revenue, approximately $2.1 million came from staking rewards under its digital-asset treasury strategy, while roughly $700,000 came from Bitcoin mining operations.
Interim Chief Executive Officer and Chief Operating Officer Pete Wylie said the company’s strategy is organized around three operating pillars: an Avalanche digital-asset treasury, Bitcoin mining, and selective development of artificial intelligence and high-performance computing infrastructure.
Wylie said AVAX One owns more than 14 million AVAX tokens and equivalents, including approximately 800,000 deployed into Treehouse. The company stakes a significant portion of its holdings directly through the Avalanche network, earning protocol-native rewards and increasing its AVAX holdings over time, he said.
As of June 30, AVAX One held approximately 13.2 million AVAX tokens with a net value of $86.3 million, about 70,000 pAVAX tokens through Treehouse valued at approximately $5.3 million, and approximately 31 Bitcoin valued at $1.8 million. The combined net value of the company’s digital assets was approximately $93.5 million.
Since launching its digital-asset treasury strategy in November 2025, the company has generated approximately $4.7 million in staking revenue, with staking activities producing an annualized yield of about 5.3%, Polimeni said.
Management Cites Avalanche Ecosystem Development
Wylie pointed to developments across the Avalanche ecosystem as supporting the company’s long-term view of the network, including institutional settlement applications, tokenized assets, validator participation and consumer-facing platforms.
He highlighted financial technology company Tassat’s migration of its Link real-time settlement network to a dedicated Avalanche Layer 1. Wylie said the arrangement enables Tassat to configure the network, manage validators and control data while using Avalanche’s speed and scalability. Tassat’s broader infrastructure has processed more than $2.5 trillion in transactions, according to Wylie.
Wylie also cited FIFA Collect, the organization’s digital collectibles platform, which operated on an Avalanche-powered blockchain during the 2026 FIFA World Cup.
In addition, he discussed Helicon, an Avalanche protocol upgrade activated on the Fuji testnet. The proposed changes include automatic renewal for validator staking and a reduction in the minimum primary-network staking period from two weeks to 48 hours. Wylie noted that the changes were not yet live on Avalanche’s mainnet.
Mining Operations and AI Pilot
AVAX One’s Bitcoin mining operations in Alberta and Ohio continue to provide recurring operating revenue, Wylie said. Over the past year, the company added 220 mining machines to its Alberta operations and continued operating its 5-megawatt Bald Eagle facility in Ohio, which is powered by flared natural gas.
The company is also evaluating AI and high-performance computing opportunities, with a focus on power-intensive infrastructure and energy costs. In Alberta, AVAX One is pursuing what Wylie described as a power-first deployment model centered on behind-the-meter natural-gas generation, modular construction and energy-advantaged sites.
During the second quarter, the company announced an AI inference pilot at its Redwater facility that could convert roughly 100 kilowatts of excess mining capacity to AI workloads. In response to an analyst question, Wylie said the pilot remains on track but that equipment had not yet been deployed because of long lead times to secure the necessary assets. He said the company had not yet received operating results from the project.
Wylie also said AVAX One remains focused on exploring Alberta opportunities primarily through a partnership with BlueFlare. Regarding the search for a permanent chief executive, he said the company is evaluating candidates with experience relevant to its Avalanche treasury, Bitcoin mining and AI infrastructure pillars, but did not provide further details.
Liquidity and Debt Restructuring
As of June 30, AVAX One had total liquidity of approximately $21.1 million, comprising $11.4 million in cash and cash equivalents, $5.4 million in restricted cash and a $4.3 million escrow receivable balance. That compared with approximately $27.6 million at Dec. 31, 2025.
Polimeni said management believes the company’s liquidity, along with its ability to leverage or liquidate digital assets earned through staking and Bitcoin mining, is sufficient to fund operating expenses and execute its growth strategy without raising additional capital.
Subsequent to the quarter’s end, AVAX One restructured certain outstanding convertible debentures, reducing related principal by approximately $6.8 million. The transactions included repayment and retirement of debentures held by two institutional investors, as well as a reduction in principal and amended terms for a third investor’s debenture. The restructuring was funded with cash on hand and a reduction in the related escrow receivable.
Management said it will continue to evaluate acquisitions, partnerships, infrastructure investments and other strategic opportunities across its three business pillars, while also remaining active under its share repurchase program when it believes the company’s shares trade below intrinsic value.
About Avax One Technology Ltd. Common Shares (NASDAQ:AVX)
AVAX One Technology Ltd is a public company offering investors regulated access to the Avalanche (AVAX) ecosystem. By integrating the reliability of U.S. capital markets with the growth potential of decentralized finance, it seeks to create a bridge between traditional and digital finance. It focuses on building a digital-asset treasury, fostering innovation, and investing in decentralized financial technologies that benefit from the Avalanche network.
