Datavault AI shares have plunged nearly 50% after the company disclosed that it could not withdraw Bitcoin credited to its account at the Biconomy exchange and must correct previous financial statements.
According to an October 26 filing with the U.S. Securities and Exchange Commission, Datavault requested an external Bitcoin transfer in June but had not completed it when the filing was submitted. The Nasdaq-listed company's shares closed October 27 at USD 0.067, down 49.55%, with approximately 244 million shares changing hands.
The withdrawal problem emerged from a financing agreement involving Scilex Holding Company. Datavault said it had recorded Bitcoin balances in its Biconomy account as company-owned digital assets. However, after reviewing the transaction, management concluded that those balances did not meet the requirements for asset recognition.
The filing states that Datavault has been "unable to complete the withdrawal" to an external account. It does not identify the cause of the delay or say that Biconomy has stopped withdrawals for other customers. The company also did not state how much Bitcoin it sought to move in June.
In September 2025, Scilex agreed to buy 15 million Datavault shares and a prepaid warrant covering another 263.9 million shares for USD 150 million in Bitcoin. The agreement valued the payment at approximately 1,328.43 BTC, using a price of USD 112,915.52 per coin.
Scilex subsequently credited 1,309.04 BTC to Datavault's Biconomy account in September and November 2025. Datavault said the lower amount reflected 19.39 BTC deducted for earlier cash advances. Both transfers occurred off-chain, meaning the exchange updated account balances rather than moving Bitcoin between public blockchain addresses.
Between September 2025 and January 2026, Datavault sold 491.431 BTC credited to the account back to Scilex for about USD 40.5 million in cash. Separately, a June term sheet proposed that Scilex purchase 837 BTC from the account for USD 50 million. That proposal depended on additional documents and closing conditions, and Datavault did not confirm its completion.
Scilex separately disclosed that it sold USD 200 million of shares in subsidiary Semnur Pharmaceuticals to Biconomy for Bitcoin, placing the exchange on both sides of the financing.
Datavault's audit committee determined on October 20 that financial statements covering September 2025, full-year 2025, March 2026 and June 2026 "should no longer be relied upon."
The company plans to replace the Bitcoin asset entries with a subscription receivable, representing an amount owed by Scilex for the securities issued. Datavault said cash received from earlier Bitcoin sales would reduce the amount Scilex owes, rather than remain linked to a recognized cryptocurrency holding.
Based on preliminary calculations, the adjustments would reduce previously reported assets by USD 8.1 million as of September 2025, USD 92.2 million at the end of 2025, USD 57.1 million in March 2026 and USD 49 million in June 2026. Datavault also expects to reverse related cryptocurrency gains and losses. The estimates could change as its accounting review continues.
Management is revisiting its assessment of whether the business has enough resources to keep operating because it previously counted the Bitcoin as available liquidity. The filing says collection from Scilex remains uncertain. Datavault has not provided a date for the corrected statements. Management is also reviewing its financial reporting controls and has discussed the corrections with its current and former auditors before issuing the revised reports.
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