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Datavault agrees to buy BankWyse, plans $35 million for capitalization

The deal’s closing hinges on Datavault obtaining immediately available financing to cover its $7.34 million cash payment and the first $5 million capitalization funding, despite reporting only $1.4 million cash on June 30.

Reported · Written up by our desk · Regulation

Datavault AI has agreed to acquire BankWyse, a Wyoming banking institution, with a disclosed initial consideration of about $22 million. The package includes $14.66 million in Datavault stock and $7.34 million in cash, while BankWyse sellers could receive up to an additional $10 million if milestones are met, split evenly between cash and stock.

Separately from the purchase price, Datavault said it will provide BankWyse $35 million for capitalization and operations. Funding would begin with $5 million at closing, followed by five $2.5 million installments between days 60 and 180, and a final $17.5 million payment by the eighth month, according to the disclosed transaction terms.

The acquisition requires approval or non-objection from the Wyoming Division of Banking, and Datavault must obtain immediately available financing sufficient to cover closing obligations, including the $7.34 million cash payment and the initial $5 million capitalization funding. The conditions have been described as sitting uneasily with Datavault’s June 30 balance sheet, which showed $1.4 million in cash alongside about $49 million of Bitcoin, after using roughly $80 million of cash in operations during the first half.

Datavault also disclosed that it faces “substantial doubt” about its ability to continue as a going concern and said its existing resources were insufficient to fund the next 12 months. It reported raising $32.4 million through an at-the-market stock program during the first half, and it sold a $25 million unsecured convertible note on Aug. 18 with $25.03 million of principal, carrying 8% interest and potential dilution through convertibility terms.

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