Datavault: Intriguing Company, But Is the Stock Investable Yet?

Datavault AI (NASDAQ: DVLT) — a company operating at the intersection of AI, data management, and Web3 — has seen its stock jump nearly 18% over the past week, even though it remains down more than 23% over the last month. For the year, shares remain roughly flat. The rally reflects growing investor confidence that the company is finally executing on its Real World Asset (RWA) roadmap after years of laying technical foundations.

Image by Satheesh Sankaran from Pixabay

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What the Company Does

The company provides tools to turns real-world assets (energy projects, mining deposits, commodities like gold/copper) and enterprise data into tokenized, tradable digital products using blockchain. It converts physical/traditional assets — real estate, commodities, mining rights, invoices, carbon credits, royalties, enterprise data — into blockchain-based tokens. Once tokenized the Assets trade globally, 24/7, Ownership can be fractional. Moreover, Assets gain liquidity and programmability and Smart contracts can generate automated royalties or yields.

The company’s ecosystem includes:

• Tools that value and protect data – AI systems that analyze, score, and secure enterprise data so it can be safely used or monetized.

• Infrastructure for tokenization – Blockchain and Web3 rails that allow physical assets — like energy projects, mines, or real estate — to be converted into digital tokens.

• DataScore – which is a platform that visualizes data, creates digital twins, and prepares assets for tokenization, making it easier for businesses to understand what they own and how it can be digitized.

• High-performance computing (HPC) which provides power needed to run data exchanges, process massive datasets, and support global tokenization activity at scale.

DVLT’s business model centers on earning licensing royalties and transaction fees from the assets that get tokenized on its platform. The company positions itself as the infrastructure layer — the “rails” — for enterprise tokenization, earning revenue every time assets move through its system. its income streams include upfront fees, perpetual royalties tied to the value or volume of tokenized asset flows, and ongoing transaction fees from activity on its data exchanges.

Why The Stock Rallied? 

There have been a couple of reasons for the gains. DVLT secured two meaningful commercial contracts – Triton Geothermal and MTB Mining –  together worth more than $15 million. Both deals include perpetual royalty streams tied to tokenized asset flows, offering the first concrete proof that DVLT’s IP can produce recurring, high-margin revenue. Triton alone involves an $8-million-plus agreement and a 5% perpetual royalty on a planned $125-million geothermal token issuance, while MTB’s $7-million deal covers the tokenization of copper deposits.

The company also strengthened its financial position by completing the second tranche of its strategic equity financing. The added liquidity, including Bitcoin contributions, relieves near-term cash pressure and supports the HPC buildout required to run global data exchanges and RWA platforms. This move removed a major financial overhang and improved investor confidence.

Finally, management reported growing inbound interest from enterprises across energy, mining, biotech, and real estate. While these discussions are not yet reflected as revenue, their scale and diversity suggest the recent contracts are not isolated wins. The market viewed this momentum as early evidence that DVLT’s tokenization model could scale internationally.

Financials and Valuation

DVLT trades at a steep valuation, with a price-to-sales multiple near 10x, compared with about 3x for the broader market. Yet its current fundamentals don’t justify that premium. Q3 revenue was $2.9 million, while the company posted a net loss of roughly $33 million, and financial stability remains thin with only about 1% of assets held in cash and debt high relative to market value.

Margins are extremely weak. Operating margin sits around –754%, and net margin near –1,310%, alongside sharply negative cash flow. These figures reinforce how fragile the underlying business is today and highlight the execution risk embedded in the stock’s valuation.

The one clear positive is growth. Revenue is up 148% year over year and more than 400% in the latest quarter. This momentum — combined with management’s aggressive FY 2026 revenue outlook of over $200 million, a fourfold upward revision — explains why the market is willing to look past today’s losses. DVLT remains a tightrope walk: high ambition, high leverage, and high uncertainty. The stock trades not on what the company is, but on what it claims it can become — and everything depends on turning its patents, early contracts, and HPC infrastructure into real, repeatable, scaled revenue before time and capital run out.

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