Digital asset SPAC delays crucial merger vote, leaving a deeply undercapitalized Old Glory Bank waiting on a $50M lifeline

Here is the latest from the digital-asset markets: Digital Asset Acquisition Corp. , the SPAC seeking to combine with the parent of regulated bank Old Glory Bank, postponed the shareholder vote on the deal to 10 a. The original meeting date fell two days after the stated July 29 redemption deadline.

DAAQ said in a July 31 filing that it would continue soliciting proxies but gave no reason for the delay. The postponement did not automatically reopen redemptions. DAAQ's final prospectus says investors could withdraw a redemption request through the deadline and afterward only with the company's consent before closing.

Market Dynamics

The filing does not say whether DAAQ has approved any post-deadline withdrawals. Related Reading Adam Back’s 30,021 BTC Bitcoin treasury deal just lost the funding structure holding it together Cantor and BSTR are negotiating revised terms after saying the existing private placements will no longer be required to close, turning the Bitcoin treasury launch into a test of investor demand. Jul 12, 2026 Liam 'Akiba' Wright Capital gap meets the cash test The parent company at the center of the deal is Old Glory Holding Company.

The bank was below two distinct capital thresholds going into the vote window. The final prospectus said its Tier 1 leverage ratio remained below the ordinary 4% adequately capitalized threshold as of June 29, putting Old Glory in technical noncompliance with a merger-agreement covenant. Old Glory considered that noncompliance nonmaterial, according to the filing.

A May 2024 consent order from the Federal Deposit Insurance Corp. and Oklahoma State Banking Department sets a much higher requirement. It requires a 14% Tier 1 leverage ratio while the order remains in effect, along with regulator-reviewed capital and business plans and prior consent for dividends and bonuses.

Market Impact

Separately, prompt-corrective-action rules restrict growth, capital distributions, acquisitions, branches and new business lines while the bank is undercapitalized. The holding company's consolidated financial disclosures say its capital is not expected to cover operating losses and minimum regulatory capital needs over the next 12 months, creating substantial doubt about its ability to continue as a going concern. Management identifies cash from the merger as a mitigation, but says closing depends on other parties and market conditions and is not assured.

The warning is not a declaration that the bank is insolvent or about to close. Related Reading The US Bitcoin ATM industry is breaking under fraud, bans, and fees Bitcoin Depot’s collapse shows how fraud losses, state bans, KYC rules, and high fees are forcing a reassessment of the US Bitcoin ATM model. May 19, 2026 Gino Matos The merger agreement requires at least $50 million of closing aggregate cash, calculated from trust cash remaining after redemptions, PIPE proceeds actually received, and proceeds to be received from other transaction financing.

The party benefiting from the condition can waive it in a signed writing where lawful. 58 million of trust securities and 17. 25 million redeemable public shares as of March 31.

This shift continues to shape the digital-asset landscape, with analysts examining its near-term effects.