Scilex Holding Company, based in Palo Alto, California, has announced a significant strategic investment aimed at bolstering the capabilities of Datavault AI Inc., a company known for its innovations in data analytics and supercomputing. The $150 million investment will be made in Bitcoin (BTC) and is designed to enhance Datavault’s infrastructure for supercomputing, expand its independent data exchanges, and create new revenue opportunities.
The investment comes at a time when the global AI market is projected to balloon to $1.8 trillion by 2030, with the life sciences analytics market anticipated to reach $35.69 billion in 2024, growing at an 11.4% compound annual growth rate through 2030. By implementing Web 3.0 technologies, blockchain-secured data trading, and leveraging AI-driven analytics, Datavault aims to provide secure solutions that address issues related to trust, data integrity, and monetization.
This partnership is particularly strategic given the expected growth in the biotech data monetization market, predicted to reach between $30 billion and $50 billion by 2024. Scilex plans to utilize its expertise in the biotech sector to help create a marketplace for Real-World Assets (RWA) that are tokenized on a blockchain, representing digital ownership in the biotech and pharmaceutical industries.
According to the terms of the deal, Scilex could acquire up to 278,914,094 shares of Datavault common stock at an effective price of $0.5378 per share. This stock purchase is subject to adjustments for stock splits and similar transactions. Initially, 15 million shares will be issued upon the closing of the first investment tranche, with the remainder following approval from Datavault’s stockholders. Additionally, Scilex will have the right to nominate directors to Datavault’s board based on its ownership stake.
Henry Ji, CEO of Scilex, expressed optimism about the potential of this collaboration, highlighting Datavault’s ability to transform critical markets through advanced data analytics and AI insights. “Biotech is a market we know well,” he stated, emphasizing Scilex’s intention to guide Datavault in realizing maximum revenue generation in the sector.
Scilex itself is focused on developing non-opioid pain management products and has a portfolio of approved therapies, including ZTlido®, ELYXYB®, and Gloperba®. Its subsidiaries, particularly Semnur Pharmaceuticals, are also working on innovative non-opioid treatments.
Datavault AI, headquartered in Beaverton, Oregon, is recognized for its cloud-based platform that focuses on monetizing data assets across various industries including biotech, entertainment, and energy. Its proprietary technologies enhance audio transmission and high-performance computing, positioning the company to capture growing markets.
This investment not only signifies a strong commitment to advancing pain management solutions but also illustrates Scilex’s agility in navigating the evolving fields of technology and healthcare through strategic partnerships. As both companies venture into this new phase, they are poised to make a substantial impact across multiple sectors.
