AVAX One Debt Falls To $970K As Share Count Jumps 36%

AVAX One Technology says it eliminated more than $14.9 million of debt in the third quarter, leaving about $970,000 of convertible debt on September 30. Its October 7 release calls that significant balance sheet progress. The AVAX One debt cut sits beside a second figure in that same release. Shares outstanding rose from 7,363,270 to 9,987,248 over the quarter, a gain of about 36%.

AVAX One's October 7 release, filed as Exhibit 99.1 to an 8-K.

How the AVAX One debt got paid

Three pieces make up the $14.9 million in AVAX One debt retired. About $7.1 million of convertible debentures turned into common shares, $7.4 million was repaid and $0.4 million was redeemed into shares. That puts roughly $7.5 million of the reduction in stock and $7.4 million in cash.

Both share counts in the release carry the word "million" after them. Read as plain counts they fit the one-for-twelve reverse split of June 15, so that is how they are used here. The gain works out to about 2.62 million shares.

Buybacks ran the other way. In September the company repurchased 333,500 shares at an average $5.36, close to $1.8 million. Counting those, nearly nine new shares came out for each one bought back, since conversions and other issuance added about 2.96 million. The program has used roughly $6.1 million of its $40 million so far, with $33.9 million left as of September 30.

What the tokens are worth next to the stock

The latest count of what AVAX One holds comes from its June 30 10-Q. It lists 12,223,020.604 AVAX at a cost of $152.8 million, with a fair value of $79.8 million that day.

AVAX One's 10-Q, digital asset table for June 30, 2026.

CoinGecko prices AVAX near $10.72 as of this writing. If the count were unchanged, the tokens would be worth about $131 million. AVX closed at $6.145 on October 7 in Yahoo Finance's daily data, which puts 9,987,248 shares near $61 million. On those numbers the tokens alone come to roughly twice the equity value. That math ignores the mining and data center businesses, any cash and the remaining liabilities.

Lockups explain part of the gap

Most of those tokens cannot be sold soon. Its restriction schedule puts nearly 10 million AVAX under lockups. By far the largest block is 7.2 million tokens that free up a little each month, starting in December 2026 and ending in November 2035. At about 66,850 AVAX a month, that works out to close to $717,000 at the CoinGecko price above.

Because the schedule also covers subscription receivables, it can't be read as a clean slice of the 12.2 million.

The filing says these restrictions are left out of fair value. Interim CEO Pete Wylie told readers of the October 1 release he sees a "meaningful disconnect" between share price and intrinsic value. AVX has more than doubled from $2.94 on August 19, so some of that disconnect may already have closed. A lower AVAX One debt load does not change the lockup calendar.

Earlier coverage of another Avalanche treasury vehicle covers its sale of locked AVAX to the foundation.

Share and token figures come from AVAX One's filings, and prices from CoinGecko and Yahoo Finance on October 7 and 8. This is reporting on filings and gives no view on AVX or AVAX.