Datavault AI shares halve after company says it cannot withdraw bitcoin

What happened

Shares of Datavault AI lost roughly half their value after the Nasdaq-listed company disclosed that it has been unable to withdraw bitcoin from the Biconomy exchange since June. Decrypt reported the stock closed at $0.06 on Tuesday, a decline of more than 50%, while Bitcoinist put the Oct. 27 close at about $0.067. The shares recovered to near $0.085 on Wednesday, according to Decrypt.

The admission came in a Form 8-K filed Oct. 26. Datavault said it requested a withdrawal to an external account in June and has been unable to complete it. The filing does not identify what blocked the transfer, and Bitcoin.com News reported that neither Datavault nor Biconomy has made any further public statement on the matter.

In the same filing, the company said four sets of financial statements should no longer be relied upon: its 2025 annual report and three quarterly reports filed between November 2025 and August 2026. Datavault said it expects to reverse the crypto gains and losses it had recorded on the coins.

After reviewing the transaction, Datavault concluded the bitcoin never qualified as one of its digital assets, because it could not demonstrate control. The arrangement will instead be recorded as a subscription receivable, meaning money a buyer owes for newly issued stock, presented as a reduction of stockholders' equity. The $40.5 million in cash the company already received reduces what Scilex owes.

Why it matters

Datavault had counted the bitcoin balances as a source of liquidity, so management is now reassessing whether the company can continue as a going concern, the accounting test for whether a business can meet its obligations. The filing also flags uncertainty over collecting what Scilex owes, and lists Scilex's creditworthiness, reliance on a third-party custodian, Nasdaq listing compliance and potential litigation or regulatory inquiries among its risks.

The episode illustrates a broader point for corporate bitcoin treasuries: a balance-sheet entry is not the same as access. According to Bitcointreasuries.net data cited by Bitcoin.com News, 201 public companies hold 1.296 million BTC worth $105 billion, yet disclosure practices vary widely. Strategy, which accounts for about 65% of that total, does not publish proof of reserves or wallet addresses, leaving investors to trust its custodians, while Metaplanet and Twenty One Capital have published holding addresses.

What the data shows

The restatements are expected to reduce total assets by $8.1 million as of Sept. 30, 2025, by $92.2 million at the end of 2025, by $57.1 million as of March 31 and by $49 million as of June 30. Bitcoin.com News calculated that about 817.6 BTC, worth roughly $66 million at recent prices, sits in the account Datavault says it cannot access. The outlet also noted Biconomy's self-reported proof of reserves showed $197 million in crypto assets, 73% of it in bitcoin, and put Datavault's market capitalization near $65 million.

Scilex's own filings show it already owed Datavault $8.8 million of a $10 million licensing fee as of June 30, while affiliate Vivasor owed $15 million of a $20 million fee.

Background

The bitcoin traces to a Sept. 25, 2025 agreement in which Scilex Holding, a pain-medicine company, agreed to pay $150 million in bitcoin for 15 million Datavault shares plus a pre-funded warrant covering another 263.9 million shares. At $112,915.52 per coin, the purchase came to about 1,328.43 BTC, an effective $0.5378 per share.

Scilex obtained the coins from Biconomy: two days before the Datavault deal, it agreed to sell 12.5 million shares of its Semnur Pharmaceuticals subsidiary to the exchange for $200 million in bitcoin, and it used $150 million of that to buy the Datavault stock. Scilex credited 1,309.04 BTC to Datavault's Biconomy account on Sept. 26 and Nov. 25, 2025, a figure reflecting a 19.39 BTC deduction for earlier cash advances. Those credits were off-chain, meaning the exchange adjusted balances on its own books rather than moving coins on the Bitcoin blockchain, and Datavault never held the private keys.

Between Sept. 26, 2025 and Jan. 30, 2026, Datavault sold 491.431 BTC back to Scilex the same way for about $40.5 million in cash. On June 24, 2026, the month Datavault says it sought a withdrawal, Scilex signed a binding term sheet to buy the 837 BTC remaining in the Datavault wallet for $50 million, with $30 million upfront and $20 million in quarterly installments through Dec. 31, 2028, payable in cash or Scilex securities. Combined with the coins already returned, the 837 BTC matches the original 1,328.43 BTC.

What is still unclear

It remains unknown why the withdrawal failed. Bitcoinist noted the disclosure does not establish that the coins were stolen or permanently lost, and Datavault has offered no definitive explanation. Datavault has not said when it will file the restated statements and warned that delays could extend to its quarterly report for the period ended Sept. 30, 2026. Bitcoin.com News said it contacted Datavault, Biconomy and Scilex for comment.

What to watch

Investors will be watching for any resolution with Biconomy, the timing and contents of the revised financial statements, and management's reassessment of liquidity and financing needs. Also relevant: whether the 837 BTC term sheet becomes a definitive agreement, and whether the restatement affects Datavault's Nasdaq compliance. Bitcoin.com News noted that Datavault was still presenting the bitcoin as a resource for paying bills in its August quarterly report and was promoting a meme coin launch on Biconomy during the same period.

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