Digital Asset Acquisition Corp. terminated its planned merger with Old Glory Holding Company on August 13 — the day before shareholders were scheduled to vote on it. Shares closed 43.53% higher the following session.
Old Glory's president and CEO, Mike Ring, told customers in an email that the Federal Reserve would not approve the transaction, Banking Dive reported. The parties had submitted a Federal Reserve application in February to register the combined holding company. The termination agreement gives no reason for the decision and does not describe a formal denial.
For holders of DAAQ shares, the collapse of the deal reopens a standard path out: shareholders in a blank-check SPAC can redeem their stakes from the trust at roughly the per-share value held there. These shares tend to trade at a discount to trust value while a deal is open, because the outcome of the deal remains uncertain. With no deal pending, that uncertainty is removed.
DAAQ closed at $10.42 on August 14, up from a previous close of $7.26, on dollar volume of about $1.2 million across 1,652 trades. The float is 17,250,000 shares; short volume on the session was 9,694 shares.
The deal had been announced January 13. It assigned Old Glory a $250 million pre-money valuation and was intended to take the bank's holding company public on Nasdaq under the ticker OGB, according to a Business Wire announcement that day. DAAQ held about $176 million in its trust account. The parties planned to raise at least $50 million in additional financing, though none had been secured as of the final prospectus filed with the SEC. Under the termination agreement, no fee is owed by either party.
That prospectus had flagged serious problems at Old Glory. The company carried an accumulated deficit of $51.8 million as of March 31, 2026, and recorded net losses of $14.8 million in 2025 and $4.5 million in the first quarter of 2026. The filing said the company's capital was not expected to cover operating losses and minimum regulatory capital requirements over the next 12 months — a going-concern warning. The merger had been Old Glory's primary route to new capital; Ring's customer email did not identify an alternative, Dallas Express reported.
DAAQ said it will postpone the shareholder meeting indefinitely. Ring told customers he intends to sue the Federal Reserve personally — "on his dime, not the company's" — according to Banking Dive.