Avax One Technology Ltd. Common Shares (NASDAQ:AVX) reported a sharp increase in third-quarter revenue and a return to profitability, helped by a $55.1 million unrealized gain on its digital assets, as management outlined plans to concentrate resources on its Avalanche treasury strategy.
Interim Chief Executive Officer and Chief Operating Officer Pete Wylie said the company would not proceed with its previously announced artificial intelligence and high-performance computing data center initiatives, including a proposed project with BlueFlare Energy Solutions Inc.
“While we continue to recognize the opportunity in AI infrastructure, we believe our capital and resources are better directed toward expanding our Avalanche digital asset treasury strategy,” Wylie said.
Revenue Rises as Digital Asset Gain Drives Profit
Third-quarter revenue rose to $2.4 million from $526,000 a year earlier, Chief Accounting Officer Stephanie Brady said. The increase primarily reflected the company’s shift to an Avalanche digital asset treasury strategy in the fourth quarter of 2025.
Revenue included $1.8 million from staking rewards and $0.7 million from Bitcoin mining. Net income was $49.9 million, or $6.11 per diluted share, compared with a net loss of $8.4 million, or $66.81 per diluted share, in the prior-year quarter.
Brady said operating expenses were a “positive $50 million,” compared with $3.1 million a year earlier. The quarter included the $55.1 million unrealized gain from changes in digital asset market values and a $483,000 realized loss on digital asset transactions. Adjusted operating expenses were approximately $4.7 million, she said.
Cash and cash equivalents totaled $8.5 million at September 30, down from $22.1 million at December 31, 2025.
Staking and Treasury Strategy
Wylie said Avax One aims to increase AVAX ownership per share through capital allocation, treasury management and recurring yield. Its approach includes native staking, selective decentralized finance opportunities and capital markets transactions that management believes can benefit shareholders.
As of September 30, the company held approximately 14.17 million AVAX tokens and equivalents, including 858,075 deployed into Treehouse, according to Wylie. Approximately 99.7% was actively staked, he said. Staking generated approximately 141,112 AVAX in third-quarter rewards, representing an annualized yield of approximately 5.85%.
Brady separately said the company held approximately 13.31 million AVAX tokens and approximately 659,000 tAVAX tokens through its Treehouse deployment at quarter-end. The call did not reconcile the two executives’ Treehouse figures.
Wylie said the company generally targets nine-month staking periods, with holdings maturing at different intervals to provide periodic access to tokens. Avax One operates its own Avalanche validator and participates in liquid staking through Treehouse.
Debt Reduction and Share Repurchases
Avax One eliminated more than $14.9 million in convertible debt during the quarter through repayments, conversions and redemptions, Wylie said. It eliminated the remaining approximately $970,000 after quarter-end.
The company also repurchased 333,500 shares in September at an average price of $5.36 and another 710,000 shares in October at an average price of $5.46. Cumulative repurchases since November 2025 reached 1,496,761 shares, with approximately $30.4 million remaining under its $40 million authorization.
Wylie said the company views repurchases at a meaningful discount to the underlying value of its assets as an attractive use of capital. Its Bitcoin mining operations in Alberta and Ohio continued to generate revenue, while management evaluates their longer-term role.
Avalanche Ecosystem Developments
Wylie highlighted institutional and commercial activity on Avalanche, including Progmat’s migration of more than JPY 452 billion, or approximately $2.7 billion, in regulated digital securities to the network.
He also said the New York Stock Exchange had selected Avalanche as core settlement infrastructure for an upcoming tokenized securities trading platform. The platform is targeting a fourth-quarter launch, subject to regulatory approval, he said.
No analysts asked questions during the call.
About Avax One Technology Ltd. Common Shares (NASDAQ:AVX)
Avax One Technology Ltd. is a digital asset technology company focused on building an Avalanche (AVAX) treasury and participating in the Avalanche blockchain ecosystem. Its strategy centers on acquiring and holding AVAX tokens as a primary treasury asset. The company’s activities may also include staking and supporting blockchain infrastructure, allowing it to participate in network validation and potentially generate blockchain-based rewards. Unlike a traditional operating company, Avax One’s business is primarily tied to digital assets and blockchain technology rather than the sale of conventional products or services.
