Scilex Holding Company announced a $150 million investment in Bitcoin in Datavault AI (NASDAQ: DVLT) to expand its supercomputing infrastructure and develop a data trading platform.
The deal allows Scilex to receive up to 279 million common shares of Datavault and the right to nominate board members, supporting the expansion of its data processing capabilities and business operations.
- Scilex invests $150 million in Bitcoin in Datavault AI.
- Goal: expand supercomputer infrastructure and develop data trading platform.
- Scilex is entitled to receive up to 279 million ordinary shares and the right to nominate directors.
Transaction details
Scilex will invest $150 million in Bitcoin in Datavault AI (NASDAQ: DVLT) and in return receive common stock and the right to nominate board members.
The transaction is intended to support the expansion of Datavault's supercomputing infrastructure and promote the development of a data trading platform that incorporates Cryptoasset as an investment Capital source.
Scilex Holding Company announced that it will invest $150 million in Bitcoin in Datavault AI to support the expansion of its supercomputing infrastructure and the development of a data trading platform; Scilex will receive up to 279 million common shares and the right to nominate directors.
GlobeNewswire
Implications for Datavault AI
The investment provides Capital for expanding processing capacity and data product development, helping Datavault accelerate the rollout of its trading platform and related services.
Raising Capital in Bitcoin can diversify funding sources, while also creating governance and transparency requirements when integrating Cryptoasset into financial reporting and corporate operations.
Shareholder rights and governance
Scilex is allowed to receive up to 279 million common shares and has the right to nominate board members, change ownership structure and influence corporate governance strategy.
The right to nominate directors could help Scilex participate in representing interests in the direction of the company, but the appointment is still subject to the prescribed process and shareholder approval.
Impact on cryptocurrency market and data
Combining investments with Bitcoin represents a trend of using cryptocurrencies as a means of raising Capital for high-tech projects and data infrastructure.
The actual impact on the cryptocurrency market and data trading activity depends on the scale of infrastructure deployment, reporting transparency and investor response, as well as regulatory adjustments.
When did this transaction take place?
The notice states the intention to invest, however the timing of the transaction completion and the specific terms are subject to agreement between the parties and relevant regulations.
Will Scilex control Datavault AI?
The right to nominate a director does not imply complete control; actual control depends on the percentage of share ownership after the transaction is completed.
What are the investment risks for Datavault?
Risks include Bitcoin price volatility, changing financial conditions, and challenges in integrating cryptocurrency Capital into corporate operations.
