AVAX One holds $88 million in Avalanche tokens, but its lender only wants cash or Bitcoin
Summary
AVAX One’s lender sharply tightened debt terms after CEO Jolie Kahn’s July departure triggered a key-person default. In an Aug. 5 SEC filing, the institutional investor waived the breach only after AVAX One paid $1.3 million and accepted tougher covenants. Minimum liquidity was raised 35-fold to $3.5 million, and only bank cash and Bitcoin in custody count toward it, excluding the company’s nearly 14 million AVAX tokens. The lender also required AVAX One to appoint a permanent CEO within 180 days, raised the remaining debenture principal, increased monthly redemptions, and lowered the conversion price, which could increase dilution. Shares have fallen about 42% since Kahn left.
