AVAX One, a Nasdaq-listed company, holds nearly 14 million AVAX tokens worth approximately $88 million, but its institutional lender refuses to count these assets toward a new minimum liquidity requirement of $3.5 million. This obligation, imposed under a restructuring agreement on August 5, only recognizes bank cash and Bitcoin held in custody, representing a 3,400% increase from the previous $100,000 threshold. The measure follows the departure of CEO Jolie Kahn in July, which triggered a key-person covenant breach, forcing the company to pay $1.3 million and accept significantly tougher debt terms. AVAX One must now appoint a permanent CEO within 180 days, while the reduced conversion price to 82.5% could increase dilution for existing shareholders.
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