Datavault buys banks and cybersecurity, but faces a securities lawsuit
Fiserv deal puts payments inside Datavault's marketplaces Fiserv will be the exclusive provider of banking, payments and debit cards inside Datavault's planned marketplaces, including the athlete NIL exchange. That gives those marketplaces a way to actually handle money and take a cut, which supports future revenue. The integration is set to finish in mid-September.
A major partnership that directly enables commerce and revenue in Datavault's core marketplaces.
Securities class action alleges false statements Rosen Law Firm filed a class action claiming Datavault overstated the value of past partnerships, overstated trading activity on its platform, and failed to disclose a link to a convicted felon. Lawsuits like this can cost money, distract management and scare investors, so they weigh on the stock.
A legal threat that could hurt finances and investor confidence, a real counterweight to the positive news.
Buying CyberCatch and BankWyse adds security and banking Datavault agreed to buy cybersecurity firm CyberCatch for $94.5 million cash and Wyoming-chartered BankWyse, which brings regulated custody and banking. These fill gaps in its tokenization platform, but both deals still need approvals and the cash outlay is large.
Two acquisitions that expand Datavault's capabilities but carry execution and approval risk.
Q2 revenue jumps 287%, $200M target reaffirmed Second-quarter revenue rose to $6.7 million from $1.7 million a year earlier, mostly from the Acoustics division, and Datavault raised $60 million while repeating its $200 million full-year target. The growth is real but the target is far above current sales, so it depends on new exchanges launching and deals closing.
Strong reported growth and a bold target are key to the bull case, though the gap to the target is a risk.