AVAX One CEO says $35.1M quarterly loss masks growth in its staking and treasury business

AVAX One interim CEO Pete Wylie has said $33 million in non-cash charges accounted for most of the company's $35.1 million second-quarter loss as staking helped revenue rise to $2.8 million.
Summary

• AVAX One's adjusted net loss was $2.2 million after excluding $33 million in non-cash charges.
• Staking generated $2.1 million as quarterly revenue rose from approximately $500,000 to $2.8 million.
• The company held 14.09 million AVAX and equivalents, with roughly 95% actively staked.
• Wylie said AVAX One favors established yield partners and maintains a conservative approach to debt.

AVAX One interim CEO Pete Wylie told crypto.news that the reported loss did not capture the operating performance of the company's staking, mining and digital infrastructure businesses.

"The $35.1 million number can be attention-grabbing, but it does not tell the full story," Wylie said.

"It includes about $33 million of what are called non-cash charges, most of that being an unrealized markdown based on current prices for the AVAX we continue to hold and accumulate."

After removing the non-cash items, AVAX One reported an adjusted net loss of $2.2 million for the quarter. Wylie said the adjusted figure provided a clearer view of the operating business, although the company's reported results remain closely tied to AVAX's market value.
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AVAX One's loss was driven by digital-asset markdowns

According to AVAX One's Aug. 13 earnings release, the company recorded a $29.8 million unrealized loss from changes in the market value of its digital assets. A further $2.6 million impairment came from its liquid-staking tokens, while share-based compensation and depreciation contributed approximately $600,000.

Operating expenses reached $36.2 million, up from $1.8 million during the same quarter of 2025. Excluding the $33 million in non-cash charges, AVAX One calculated adjusted operating expenses of $3.2 million.

Net loss reached $4.41 per diluted share, compared with an $8.1 million loss, or $335.88 per diluted share, one year earlier. On the company's adjusted basis, the latest loss was $0.27 per diluted share.

Although an unrealized loss does not require an immediate cash payment, AVAX One's results show how a declining token price can reduce the recorded value of its treasury. Wylie acknowledged that volatility is built into the strategy but said staking rewards continue to accrue in AVAX regardless of the token's dollar price.

"We earn revenue in 'nominal' form, AVAX tokens, and though the current value is lower than we expected for this period, if the token price rebounds, we get the benefit as our earned rewards tokens increase in value, even though we recognized initial revenue at a lower price," he said.

Quarterly revenue rose to $2.8 million from approximately $500,000 a year earlier. Staking supplied about $2.1 million, or 75% of the total, while Bitcoin mining produced approximately $700,000.

As of Aug. 13, the company held 14,091,424 AVAX tokens and equivalents. Approximately 95% of the holdings were staked at an annualized yield of about 5.4%, according to the earnings release.

Around 800,000 AVAX had been deployed into Treehouse. An AVAX One SEC filing describes Treehouse's tAVAX as a liquid-staking receipt backed by BENQI's sAVAX, with an AVAX redemption process that can take approximately 14 days.

The filing also lists smart-contract vulnerabilities, extreme market volatility, governance attacks and bridge failures among the risks associated with decentralized finance positions. AVAX One said it would typically absorb losses arising from an adverse event.

Liquidity and debt shape the treasury strategy

Wylie said AVAX One allocates capital according to where management believes each dollar can create the most shareholder value. Depending on market prices and available opportunities, the company can buy AVAX, repurchase its shares, or fund selected infrastructure projects.

"Staking is the foundation of our Avalanche treasury strategy. Our Bitcoin mining operations contribute operating cash flow and provide a gateway for opportunities in the AI and high-performance computing space, an area we are actively exploring."

During the second quarter, AVAX One repurchased approximately 144,755 common shares under its authorized $40 million buyback program. The company said it had repurchased approximately 417,537 shares since November 2025 on a split-adjusted basis.

Reported liquidity stood at approximately $21.2 million on June 30, down from $27.6 million at the end of 2025. The latest amount included $11.4 million in cash and cash equivalents, $5.4 million in restricted cash, and a $4.3 million escrow receivable.

Given AVAX's volatility, Wylie said the company remains cautious about its capital structure, particularly debt. After the quarter closed, AVAX One retired and restructured approximately $6.8 million of convertible debt.

The August restructuring fully repaid debentures held by two institutional investors and reduced the principal owed to another investor. AVAX One also agreed to increase a covenant covering the minimum cash and Bitcoin it must maintain from $100,000 to $3.5 million.

For U.S. investors, AVAX One offers public-market exposure to an Avalanche treasury through its Nasdaq-listed AVX shares. The structure also means shareholders face risks from both the company's operations and changes in the value of AVAX recorded in its U.S. financial reports.

Wylie took over as interim CEO while retaining his chief operating officer role after Jolie Kahn left the company in July. As previously reported by crypto.news, the board retained ZRG Partners to search for a permanent chief executive while weak AVAX prices pressured the company's treasury strategy.

AVAX One favors explainable yield over higher returns

With most of its AVAX working through staking, the company monitors yield and operating costs as it tries to increase the number of tokens held per share, according to Wylie.

"Our yield partnerships are with established, proven companies. We'd rather earn a yield we can explain than a higher one that seems too good to be true, because it probably is."

AVAX One's staking rewards accrue in tokens, leaving their dollar value exposed to changes in AVAX prices. Wylie said management focuses on keeping the assets productive while controlling operating expenses so the treasury can continue accumulating AVAX.

Avalanche's Helicon upgrade could provide more flexibility if its staking changes progress from testnet to mainnet. Helicon is live on the Fuji testnet and includes proposals to reduce the minimum primary-network validator commitment from 336 hours, or 14 days, to 48 hours.

Another proposal introduces automatic staking renewal, allowing validators to set a cycle period and an auto-compounding ratio. Avalanche's documentation says the feature applies to primary-network validators, not Avalanche L1 validators or legacy subnet validators.

Wylie said shorter commitments could improve liquidity and reduce the barrier for institutions. Since the changes remain under testing, AVAX One has not yet gained its proposed benefits in its mainnet staking operations.

Avalanche adoption supports Wylie's treasury conviction

Wylie tied the company's long-term confidence to institutional activity across Avalanche, pointing to recent deployments involving tokenized securities, lending and stablecoin settlement.

In July, Japan's Progmat completed the migration of ¥452 billion in issued securities and underlying assets from Corda 5 to a dedicated Avalanche L1. Progmat said the transfer covered all active projects on its platform without disrupting participating financial institutions.

According to Progmat, its platform handles 45 of Japan's 89 publicly disclosed security-token projects and accounts for 64.6% of the country's market by issuance value. Internal tests cited by the company found that rights-transfer processing became three to five times faster after the migration.

Aave also deployed V4 on Avalanche on July 15, its first launch of the architecture outside Ethereum. Aave's documentation says the deployment uses a core liquidity hub with main, foreign-exchange, and AVAX-linked lending sections.

Stablecoin payments supplied another institutional test. Hyundai Card completed a $20,000 remittance pilot between Hyundai Motor entities in the United States and Mexico using USDT on Avalanche. The company said the settlement took about seven minutes.

BlackRock's BUIDL fund, issued through Securitize, had also accumulated more than $900 million on Avalanche by July after adding approximately $436 million in one week. BUIDL invests mainly in U.S. Treasury bills, cash, and repurchase agreements, while access remains subject to investor eligibility and transfer controls.

Visa added Avalanche to its supported stablecoin settlement networks in 2025. An April 2026 company announcement said Visa's nine-network stablecoin settlement pilot had reached a $7 billion annualized run rate, although Visa did not provide an Avalanche-specific share of that volume.

Outside its treasury operations, AVAX One is preparing an AI inference pilot at its Redwater facility in Alberta. The project is testing whether approximately 100 kilowatts of excess Bitcoin-mining capacity can support AI workloads, with the company working alongside infrastructure developer BlueFlare on additional AI and high-performance computing opportunities.
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