AVAX One holds $88 million in Avalanche tokens, but its lender only wants cash or Bitcoin

An unnamed institutional investor has drastically tightened its leash on AVAX One, raising the Nasdaq-listed crypto firm's minimum liquidity requirement 35-fold and strictly excluding its namesake Avalanche token from counting toward the new threshold.The stringent restructuring, detailed in an Aug. 5 Securities and Exchange Commission (SEC) filing, follows the July departure of CEO Jolie Kahn. Her exit triggered a default on a key-person covenant, forcing the digital asset treasury company to renegotiate its debt.Kahn previously orchestrated the firm's pivot from agriculture to digital assets under the AgriFORCE moniker. Since her exit, the company’s shares have fallen about 42% to $3.20.This move comes amid a broader restructuring where AVAX One retired $6.8 million in outstanding principal debentures.AVAX One faces stringent debt conditionsUnder the agreement, the institutional investor waived the breach after AVAX One paid $1.3 million and accepted significantly tougher financial conditions.The first change was a 3,400% increase in the company’s minimum liquidity requirement to $3.5 million from $100,000. The amended covenant recognizes only bank cash and Bitcoin held in custod...