Datavault AI Shares Plunge After It Says It Cannot Withdraw Bitcoin From Biconomy and Will Restate Results

Shares of Datavault AI, a Nasdaq-listed company that had reported bitcoin on its balance sheet, fell by roughly half on Tuesday, October 27, 2026, after the company disclosed that it has been unable to withdraw bitcoin from its account at crypto exchange Biconomy since June and that a year of its financial statements can no longer be relied upon.

The stock closed at $0.067, down 49.55%, with roughly 244 million shares traded, CoinDesk reported. Crypto Briefing said reported declines ranged from 37% to 48% during the session, with the shares trading around $0.07.

What the filing says

In a Form 8-K filed with the Securities and Exchange Commission and dated October 26, the company said its audit committee and management concluded on October 20 that four sets of financial statements should no longer be relied upon: the quarterly results for the period ended September 30, 2025; the audited results for the year ended December 31, 2025; and the quarterly results for the periods ended March 31, 2026, and June 30, 2026. Related earnings releases and investor presentations should also not be relied upon to the extent they reflect those figures, the company said.

The issue traces back to a securities purchase agreement signed on September 25, 2025, with Scilex Holding Company. Under that deal, Scilex agreed to buy 15,000,000 Datavault shares and a pre-funded warrant for 263,914,094 shares for $150 million, payable in bitcoin at a spot rate of $112,915.52 per coin, or about 1,328.43 bitcoin, according to the filing.

On September 26 and November 25, 2025, Scilex credited 1,309.04 bitcoin to Datavault's wallet at Biconomy through an off-chain transfer. The amount reflected a reduction of 19.39 bitcoin for cash advances Scilex had made to Datavault before the deal closed. Between September 26, 2025, and January 30, 2026, Datavault sold 491.431 of those bitcoin back to Scilex, also off-chain, for about $40.5 million in cash. By simple subtraction, that would leave about 817.6 bitcoin credited to the account; the filing does not state a current balance.

"In June 2026, the Company requested a withdrawal of Bitcoin from the digital wallet maintained at Biconomy to an external account and has, as of the date of this Current Report on Form 8-K, been unable to complete the withdrawal," the filing said.

From digital asset to receivable

After reviewing the transaction, Datavault determined that the bitcoin associated with the Scilex purchase did not meet the requirements for recognition as a digital asset of the company. It will instead record a subscription receivable from Scilex, presented as a reduction of stockholders' equity, and the cash received in the bitcoin sales back to Scilex will reduce that receivable.

The restatements are expected to reduce total assets by:

• $8.1 million as of September 30, 2025;
• $92.2 million as of December 31, 2025;
• $57.1 million as of March 31, 2026; and
• $49.0 million as of June 30, 2026.

The company also expects to reverse the crypto asset gains and losses it had recorded on the holdings. It said the evaluation is preliminary and unaudited and that additional errors could be identified.

Going-concern review and next steps

Datavault said management had counted the bitcoin balances as a source of liquidity when assessing whether the company could continue as a going concern. "Because Bitcoin balances will no longer be presented as an asset and the collection of amounts owed by Scilex is uncertain," management is reassessing that evaluation for the year ended December 31, 2025, and the quarter ended March 31, 2026, the filing said.

The company has not set a timetable for filing restated statements and said its review of internal controls is continuing, including whether any deficiencies amount to a material weakness. Among the risks it listed were possible delays to its quarterly report for the period ended September 30, 2026, its ability to maintain compliance with Nasdaq listing requirements, its reliance on a third-party custodian and the creditworthiness of Scilex, and the outcome of efforts to collect from Scilex or obtain Biconomy's cooperation. The audit committee discussed the matters with CBIZ CPAs P.C., its current auditor, and BPM LLP, its former auditor. The filing was signed by Chief Financial Officer Brett Moyer.

Biconomy also played a role in supplying the bitcoin used in the deal. Scilex's June financial report says it sold $200 million of shares in its subsidiary Semnur to Biconomy for bitcoin and then used $150 million to buy Datavault securities, according to CoinDesk, which said Biconomy had not responded to a request for comment as of Asian afternoon hours on Wednesday.

Market backdrop

The disclosure came during a broader rebound in crypto prices. Bitcoin rose nearly 2% to just under $81,000 during Asian morning hours on Wednesday, recovering from a weekend slip to nearly $79,000, as traders awaited the Federal Reserve's rate decision, CoinDesk reported.