Old Glory Bank's SPAC Deal: A Tactical Setup for Crypto Banking

This transaction is a specific, near-term event that will fundamentally restructure Old Glory Bank. The deal, expected to close by early Q2 2026, creates a public vehicle, OGB Financial Company, by merging Old Glory Bank's holding company with Digital Asset Acquisition Corporation (DAAQ). The mechanics are clear: DAAQ's $176 million trust fund provides the primary capital, with the bank's pre-money valuation set at $250 million. The parties also intend to secure an additional $50 million or more through a private investment in public equity (PIPE) to fund the combined entity's operations and growth.

The immediate tactical setup hinges on the shareholder and regulatory approvals required for the merger. This is the first major catalyst, with the closing date serving as the near-term event horizon. The risk here is twofold. First, the SPAC vehicle itself, DAAQ, trades near its 52-week low, reflecting weak financial health. Second, this weakness could pressure the combined entity's valuation at the listing, as the market may discount the deal based on the SPAC's perceived quality. The success of the PIPE, which is critical for post-IPO capital, will be a key early test of investor sentiment.

Old Glory's Growth Engine vs. Regulatory Overhang

The bank's explosive growth is its strongest proof point. Deposits have surged from $10 million to over $245 million since its 2023 launch, a 2,000% increase that signals real market traction for its crypto-focused platform. This operational momentum is the core of its investment thesis. The bank's mission to fully integrate crypto into daily banking is a clear strategic differentiator, targeting a niche with high growth potential.

Yet this growth engine operates against a backdrop of evolving regulatory overhang. The immediate catalyst is the SPAC merger itself, which will bring the bank under public scrutiny and new compliance requirements. The longer-term regulatory landscape is shifting, but the pace and specifics matter. Federal momentum is building, with the OCC conditionally approving five national trust banks for digital asset activities last December. This signals a more open supervisory posture, which could accelerate Old Glory's model.

The key tension is timing and alignment. The bank's rapid deposit growth suggests strong demand, but its Texas-based operations must navigate state-level rules. The state has provided clarity on virtual currency custody services, which is a positive step. However, the federal regulatory framework remains in flux, with new proposals and interpretations emerging. The bank's success will depend on its ability to scale its crypto integration while staying ahead of these regulatory curves. Any misstep could derail its growth narrative, while timely adaptation could solidify its first-mover advantage.

Valuation and the Path to Public Listing

The valuation math is the central puzzle. The deal implies a post-money valuation of roughly $475 million for the combined entity, a steep multiple for a bank with deposits of just $245 million. This premium must be justified by Old Glory's explosive growth trajectory and its unique niche. The bank's 2,000% deposit surge since 2023 is the primary asset, but translating that into a sustainable earnings power that supports a $475 million market cap is the immediate challenge.

The path to that valuation is fraught with two major uncertainties. First is the SPAC's own financial weakness. DAAQ trades near its 52-week low, and its weak financial health score could create a negative halo effect for the new public company. The success of the intended PIPE for at least $50 million is a critical early test; a weak subscription would signal investor skepticism that could cap the stock's initial run.

Second is the regulatory overhang. A major pending catalyst is the Senate bill to create a federal crypto framework. While long-term clarity is positive, the bill's passage could also introduce new compliance costs and heightened scrutiny. The banking industry is already opposing related legislation, warning of risks to financial stability. For Old Glory, this means its growth story is now tied to a legislative process that could reshape the rules of its core business.

The key watchpoint remains the successful closing and listing. If the merger clears regulatory and shareholder hurdles by early Q2, the bank will have its public platform and capital. The immediate setup is binary: the valuation premium is either justified by operational momentum or it is a speculative bet on a future that remains uncertain.