Exploring DatChat, Inc. (DATS) Investor Profile: Who’s Buying and Why?

You're looking at DatChat, Inc. (DATS) and asking the right question: Who is defintely buying this stock, and what's their calculus given the financials? Honestly, the investor profile is a fascinating split between small-cap hunters and institutional index players. Over the nine months ended September 30, 2025, the company reported a net loss of $4.2 million, driven by a cash burn of roughly $3.5 million from operations, all while generating a mere $489 in net revenue. So, why are institutions like LPL Financial LLC and Vanguard Group Inc. still holding a collective 258,894 shares, even if institutional ownership sits at a relatively low 3.5%? It's a classic high-risk, high-reward bet on the pivot to the Myseum platform and the intellectual property (IP) portfolio, which includes a January 2025 capital raise that netted $4.5 million, giving them a short-term cash buffer of approximately $4.8 million. Is this a shrewd, long-term accumulation of a patent-rich micro-cap, or is it just index fund mechanics at play? Let's dive into the SEC filings and see what the big money is really thinking.

Who Invests in DatChat, Inc. (DATS) and Why?

You're looking at DatChat, Inc. (DATS), which recently rebranded to Myseum, Inc. (MYSE) in August 2025, and you want to know who is buying this volatile micro-cap stock and what their endgame is. The direct takeaway is this: the investor base is a classic high-risk mix, dominated by speculative retail traders but validated by a small, strategic cohort of institutional money, especially quantitative funds betting on volatility and future growth.

The company's financial profile-net revenues of only $436 for the fiscal year ended December 31, 2024, alongside a net loss of $5.025 million-tells you this is a pure growth play, not a value or income stock. You're buying a story, not a dividend stream. (For a deep dive on the company's story, see DatChat, Inc. (DATS): History, Ownership, Mission, How It Works & Makes Money).

Key Investor Types: Retail vs. Institutional

The ownership structure for DatChat, Inc. (DATS) is bifurcated. On one side, you have the institutional players, and on the other, the vast, volatile pool of retail investors. The high beta (a measure of volatility compared to the market) of 2.34 as of January 2025 is a clear sign that retail volume is driving significant price swings, like the 32.41% surge seen on March 25, 2025. Honestly, that kind of volatility is a retail hallmark.

Institutional ownership is small but significant. As of the most recent filings, there are approximately 22 institutional owners holding a total of 258,894 shares. This is a tiny fraction of the overall market, but it's an important signal. Here's the quick math: the company raised approximately $5.1 million in January 2025 alone by selling 1,200,000 shares to institutional investors, underscoring that while their percentage ownership is low, their capital injection is crucial for the company's survival and growth initiatives.

• Retail Investors: Dominant in volume, highly sensitive to news, and focused on short-term price action and momentum. They are the primary source of the stock's high volatility.
• Institutional Investors: A smaller, more strategic group, including major index funds and quantitative hedge funds. They provide necessary capital and a stamp of legitimacy.
• Hedge Funds & Quant Firms: Key players include firms like Two Sigma Investments, Lp and XTX Topco Ltd. These are systematic traders focused on the stock's technical patterns and volatility, not necessarily the long-term fundamentals.

Investment Motivations: Why the Risk?

Investors are attracted to DatChat, Inc. for one primary reason: the potential for a massive, speculative return from its pivot to new technology. The company's core focus is on digital privacy and content management through its DatChat Messenger and the new Myseum platform, which leverages AI technology. They are banking on the company becoming a leader in the secure messaging and social media markets, which are massive. The motivation is pure growth, plain and simple.

The acquisition of RPM Interactive, Inc. in late 2024, repositioned to focus on AI-driven podcast and gaming technologies, is a concrete example of the growth narrative investors are chasing. They are betting that one of these new ventures-privacy-focused chat, AI-powered digital legacy, or gaming technology-will hit product-market fit and drive a massive revaluation from the current market capitalization of around $5.9 million (as of January 2025). The company does not pay a dividend, so you're not getting paid to wait. You defintely need a strong stomach for this one.

Investment Strategies: The High-Risk Play

The typical strategies seen among DatChat, Inc. investors reflect the stock's profile as a micro-cap technology company with a limited operating history and a high burn rate. You see two main camps: the long-shot believers and the short-term traders.

Long-term holding is a strategy for those who believe in the core mission of digital privacy and the new Myseum platform. They view the stock's current price as deeply undervalued relative to its potential in a multi-billion dollar market, ignoring the $5.025 million annual net loss for now. What this estimate hides, however, is the significant risk of dilution, as the company is dependent on raising capital to meet future obligations.

Short-term trading is the dominant strategy, especially among the retail and quantitative investors. The stock's high volatility makes it a prime candidate for momentum trading, where investors buy on news-driven surges-like the one that drove the stock to a 52-week high of $4.13 in January 2025-and sell quickly for a profit. The presence of quantitative hedge funds like Two Sigma confirms that systematic, high-frequency trading is actively involved, exploiting the stock's price swings and low liquidity for short-term gains. This is a trade, not an investment.

Next Step: Review your portfolio's current exposure to micro-cap growth plays and set a strict stop-loss order if you decide to buy, given the Beta of 2.34.

Institutional Ownership and Major Shareholders of DatChat, Inc. (DATS)

You're looking at DatChat, Inc. (DATS) and trying to figure out who the big money is and what they're doing. For a micro-cap company like this, which had a market capitalization around $5.9 million in early 2025, institutional interest is a huge signal. The quick takeaway is that while the overall institutional float is small, the recent activity shows a split between new, aggressive buyers and established funds cutting risk, often tied to the company's strategic pivot to Myseum, Inc..

Top Institutional Investors and Their Stakes

As of the second quarter of the 2025 fiscal year (June 30, 2025), a handful of institutions held the largest reported positions in DatChat, Inc. These are generally smaller positions for these funds, but for DATS, they represent the core institutional backing. The largest holder, LPL Financial LLC, significantly ramped up its position, signaling strong conviction in the near-term strategy. This is a classic micro-cap pattern: a few funds take a meaningful, concentrated bet.

Here's the quick math on the top four institutional holders, based on their 13F filings as of June 30, 2025:

What this estimate hides is the high volatility of the stock, which had a beta of 2.34 in early 2025, meaning its price swings are more than double the broader market's.

Recent Shifts: Who's Buying and Who's Selling?

The changes in institutional ownership during the second quarter of 2025 tell a story of strategic repositioning. Some institutions saw the company's pivot to its Myseum platform, which became the new corporate name in August 2025, as a compelling entry point. Others, however, chose to significantly reduce their exposure.

LPL Financial LLC was defintely the most aggressive buyer, increasing its stake by over +230%, adding 35,000 shares. This kind of jump usually signals a belief in a near-term catalyst, perhaps related to the company's focus on social group media sharing and content preservation. On the flip side, UBS Group AG cut its position by -43.37%, selling 21,854 shares. This divergence shows a lack of consensus among professional money managers, which is common in high-growth, high-risk micro-caps.

Other notable activity included:

• TWO SIGMA INVESTMENTS, LP and XTX Topco Ltd established new positions, buying 18,857 and 15,849 shares, respectively.
• Tower Research Capital L... and OSAIC HOLDINGS, INC. made significant cuts, reducing their holdings by -78.96% and -44.12%.

The January 2025 registered direct offering also brought in new institutional money, with the company selling 1,200,000 shares at $4.25 per share to specific institutional investors. This transaction injected approximately $5.1 million in gross proceeds, which was earmarked for working capital and general corporate expenses. That's a clear, concrete action taken by institutional investors to provide the capital needed for the company's strategic shift.

The Impact of Institutional Investors on Strategy and Stock

For a company like DatChat, Inc., which reported a net loss of over $5.02 million for the fiscal year ended December 31, 2024, institutional investors play a critical role as capital providers. They aren't just buyers; they are the lifeblood.

Their impact is twofold: funding and strategic support. The $5.1 million capital raise in January 2025 was crucial for supporting the company's new direction, including the expansion into the Myseum platform and the acquisition of RPM Interactive, Inc. The stock price surged to a 52-week high of $4.13 in January 2025, partly fueled by this institutional optimism and the company's promising growth trajectory.

The approval of a shareholder proposal in December 2024 to increase the number of shares reserved for the equity incentive plan from 300,000 to 600,000 also shows institutional support for management's ability to incentivize employees and drive the new strategy. When big investors support stock-based compensation, it signals confidence in the long-term value creation potential of the team. If you want a deeper dive into the company's financial footing, you should check out Breaking Down DatChat, Inc. (DATS) Financial Health: Key Insights for Investors.

Action: Re-evaluate the DATS investment thesis based on the Myseum, Inc. rebranding (effective August 11, 2025) and the strategic use of the $5.1 million capital raise.

Key Investors and Their Impact on DatChat, Inc. (DATS)

You're looking at DatChat, Inc. (DATS), which officially rebranded to Myseum, Inc. (MYSE) in August 2025, and the investor profile is a fascinating study in micro-cap dynamics: it's a story of high insider conviction and a massive retail base, not big institutional money. The institutional ownership is relatively small, sitting at about 5.05%, leaving the vast majority of the stock-nearly 66.51%-in the hands of retail investors.

This ownership structure means the stock is highly susceptible to sentiment swings on social media and retail trading platforms, plus, the company's direction is heavily controlled by its founders and management. You need to pay attention to insider moves here, not just the 13F filings from the big funds.

The Conviction of Insiders and the Retail Majority

The most influential investors in DatChat, Inc. (DATS) aren't the household-name funds; they are the company's own insiders. This is typical for a micro-cap company focused on new ventures like the Myseum platform, which is what the company is now primarily focused on.

Here's the quick math on who really owns the float:

• Insider Ownership: 28.44%
• Retail Ownership: 66.51%
• Institutional Ownership: 5.05%

The largest individual shareholder is Peter Shelus, a key insider, who holds approximately 1,000,000 shares, representing a substantial 23.76% stake in the company. CEO Darin M. Myman also holds a significant position of 4.62%, or 194,539 shares. When insiders hold this much, they defintely drive the corporate agenda, minimizing the risk of an outside activist forcing a sale or major restructuring.

Notable Institutional Holders and Their Recent Moves

While institutional presence is low, a few major passive funds and financial advisors hold positions, often due to index tracking. These holders tend to be passive investors, meaning they generally buy based on a stock's inclusion in an index rather than a deep dive into the company's fundamentals (like the net loss of $4,239,160 attributable to common shareholders reported for the 2024 fiscal year).

The most recent institutional filings (as of the end of Q2 2025) show a mixed picture of confidence:

LPL Financial LLC notably increased its position by over 230% in the quarter ending June 30, 2025, which is a significant accumulation for a stock this size. On the flip side, UBS Group AG cut its stake by over 43% in the same period, showing a clear divergence in institutional opinion. The Vanguard Group Inc. and Geode Capital Management, LLC largely held steady or slightly increased their positions, which is typical for index-tracking funds.

Investor Influence and Actionable Insights

The most impactful recent move by institutional investors was their participation in the January 2025 direct offering. DatChat, Inc. (DATS) sold 1.2 million shares of common stock at $4.25 per share to institutional investors, raising gross proceeds of approximately $5.1 million. This cash infusion was critical for working capital and general corporate purposes, essentially funding the strategic shift toward the Myseum platform and the acquisition of RPM Interactive.

The primary driver of stock movement, however, remains the retail investor base and insider sentiment. Insiders have been net buyers over the last three months, which is a strong signal of confidence in the new strategy, especially following the August 2025 rebrand to Myseum, Inc. The high retail ownership means news-like the launch of the Myseum platform in March 2025-can cause rapid, volatile price movements.

If you want a deeper look at the company's pivot and its core business, you should read DatChat, Inc. (DATS): History, Ownership, Mission, How It Works & Makes Money. The bottom line is that for DatChat, Inc. (DATS), the insiders and the crowd are the real market movers.

Market Impact and Investor Sentiment

The investor profile for DatChat, Inc. (DATS), now Myseum, Inc. (MYSE) following its August 2025 rebranding, is a classic study in micro-cap volatility: a small, committed insider base is betting on a pivot to the Myseum platform, while institutional money remains sparse and retail sentiment is highly polarized.

You need to understand that the primary buying interest comes from the inside. Insiders hold a significant 28.44% of the company, with the largest individual shareholder, Peter Shelus, owning 1,000,000 shares, which represents 23.76% of the company. This is a strong signal of conviction from management, and insider transactions have shown 'Net Buying' over the last three and twelve months. That's a huge portion of the float locked up by people who know the business best.

The institutional picture is much smaller. Only 5.05% of the stock is held by institutional shareholders, totaling 258,896 shares across 23 owners as of recent filings. The top institutional holders, like Vanguard Group Inc. and Geode Capital Management LLC, are primarily passive index funds that own the stock because it's in their benchmark, not because of a deep-conviction, active management call.

• Insider conviction is high; they are net buyers.
• Institutional ownership is low at 5.05%.
• Retail investors are a major, volatile factor.

Recent Market Reactions: The Capital Raise Conundrum

The stock's price action in the 2025 fiscal year clearly maps the conflict between growth opportunity and dilution risk. In January 2025, the stock surged over 350% to a 52-week high of $9.34 on high volume, likely driven by retail speculation and news about the Myseum platform launch and a patent award.

However, the company immediately capitalized on this surge by announcing a registered direct offering to institutional investors, selling 1.2 million shares for gross proceeds of $5.1 million at a purchase price of $4.25 per share. Here's the quick math: the stock immediately plunged 62.97% to $3.31 following the announcement. This kind of move-a massive spike followed by a steep drop from a discounted offering-is what retail investors call a 'rug pull,' and it defintely poisons sentiment, even if the capital raise was necessary for working capital.

As of November 2025, the stock price sits near $2.15 per share, reflecting a significant cooling-off from the January highs and a consolidation around the new business focus. You can read more about the company's fundamentals here: Breaking Down DatChat, Inc. (DATS) Financial Health: Key Insights for Investors.

Analyst Perspectives and Valuation Limits

As a seasoned analyst, I have to be honest: traditional, named analyst coverage from firms you'd recognize is essentially non-existent for DatChat, Inc. (now Myseum, Inc.). The company is officially covered by 0 analysts for revenue or earnings estimates. This lack of coverage is typical for micro-cap stocks with a market capitalization that was recently just $5.9 million in early 2025.

What we do have are technical and aggregated sentiment views. As of November 2025, the technical sentiment is 'Bullish' with many indicators signaling upward momentum, but the Fear & Greed Index is flashing 'Fear.' That's a contradiction that screams 'volatile trading opportunity' more than 'stable investment.'

The core risk is financial health. While the company holds more cash than debt and has a strong current ratio of 8.96 as of early 2025, it also faces 'rapid cash burn' and an 'anticipated sales decline' for the current year. For the fiscal year ended December 31, 2024, the company reported a net loss of over $5.02 million on net revenues of just $436. The January 2025 capital raise was a lifeline, but the company remains dependent on raising capital to meet future obligations.

What this estimate hides is the true value of the Myseum platform and the RPM Interactive spin-off, which is still in its early stages. Until we see a clear path to revenue from these new ventures, the analyst perspective defaults to caution. One aggregate forecast suggests the stock will trade between $2.41 and $2.66 through the end of 2025.