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Datavault AI Stock Plunges 50% After Firm Discloses It Cannot Access Its Bitcoin
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Datavault AI Stock Plunges 50% After Firm Discloses It Cannot Access Its Bitcoin

Datavault AI shares fell nearly 50% after the company disclosed it has been unable to withdraw bitcoin from crypto exchange Biconomy since June and will

October 28, 2026Source: coindesk.com ↗

Datavault AI (DVLT) shares plunged nearly 50% on Tuesday after a filing revealed the company had been unable to withdraw bitcoin from crypto exchange Biconomy since June and would have to restate its financial results.

The stock closed at $0.067, down 49.55%, with roughly 244 million shares traded.

The problem traces back to a September 2025 agreement with Scilex Holding Company, which agreed to purchase $150 million of Datavault shares and warrants using bitcoin. Scilex credited 1,309.04 BTC to Datavault's account at Biconomy through off-chain transfers, meaning the balances changed within the exchange rather than through transactions on Bitcoin's blockchain. Datavault subsequently sold 491.4 BTC back to Scilex for about $40.5 million in cash.

The transfer could not be completed when Datavault requested a withdrawal to an external account in June, the company said, and remained incomplete as of Monday's filing. Biconomy was also involved in supplying the bitcoin behind the investment: Scilex's June financial report says it sold $200 million of shares in its subsidiary Semnur to Biconomy for bitcoin, then used $150 million to buy Datavault securities.

Accounting Restatement

  • Datavault now says the bitcoin credited through Scilex's investment should have been recorded as an amount Scilex owed for the shares, reducing shareholders' equity instead of appearing among Datavault's cryptocurrency assets.
  • The correction is expected to reduce reported assets by $92.2 million at the end of 2025.
  • Reported assets are expected to be reduced by $49 million as of June 2026.

Datavault had counted those bitcoin balances as money it could draw on to keep the business running, but must now revisit that assessment. CoinDesk contacted Biconomy about the withdrawal request and the bitcoin backing Datavault's account and did not receive a response as of Asian afternoon hours Wednesday.

Source: CoinDesk

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