AVAX One has renegotiated its debt after CEO Jolie Kahn's July departure triggered a default under a key-person covenant, forcing the Nasdaq-listed digital asset treasury company to accept harsher terms from an unnamed institutional investor. An Aug. 5 filing with the SEC (U.S. securities regulator) shows the lender lifted the minimum liquidity threshold to $3.5 million from $100,000 and will count only bank cash and Bitcoin held in custody, excluding nearly 14 million AVAX, the Avalanche token, worth about $88 million by CoinGecko data. The company paid $1.3 million, retired $6.8 million in outstanding principal debentures (unsecured debt securities), and ended up with about $7.42 million still outstanding after the remaining debenture's principal was raised to $8.47 million from $7.7 million, an unexplained $770,000 increase. AVAX One now has 180 days from Kahn's departure to appoint a lender-approved permanent CEO, while faster monthly redemptions and a lower 82.5% conversion price could increase dilution; its shares have fallen about 42% to $3.20 since her exit.