TLDR
- Datavault AI shares plunged 49.55% to $0.067 on Tuesday following its Bitcoin accounting disclosure.
- Biconomy has not completed the company’s requested Bitcoin withdrawal since June 2026.
- Scilex credited 1,309.04 BTC through a $150 million share purchase agreement signed in September 2025.
- Accounting corrections could reduce Datavault AI’s reported December 2025 assets by $92.2 million.
- Management plans to restate four reporting periods covering September 2025 through June 2026.
Datavault AI shares fell 49.55% on Tuesday, October 27, after it disclosed a stalled Bitcoin withdrawal and accounting errors. The Nasdaq-listed stock closed at $0.067, with approximately 244 million DVLT shares traded.
In an October 26 filing, Datavault AI said it had been unable to move Bitcoin from an account at crypto exchange Biconomy since June 2026. The company gave no reason for the delay or a clear completion date.
Scilex Share Deal Funded With Bitcoin
The issue stems from a September 2025 agreement with Scilex Holding Company. Scilex agreed to pay $150 million in Bitcoin for 15 million Datavault shares and a pre-funded warrant covering nearly 264 million more shares.
Scilex credited 1,309.04 BTC to Datavault’s Biconomy account through transfers recorded within the exchange. Datavault later sold 491.431 BTC back to Scilex for approximately $40.5 million in cash. Strategy paused its Bitcoin purchases during the past week.
Datavault AI Plans Accounting Corrections
After reviewing the Scilex deal, Datavault concluded it should not have counted the credited Bitcoin as its own cryptocurrency assets. Instead, the company must record the unpaid share purchase amount as money owed by Scilex, reducing reported shareholders’ equity.
The corrections would cut reported 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 million as of June 30, 2026. The figures remain preliminary while accountants review the records.
Earlier Financial Results Ruled Unreliable
Datavault’s audit committee and management decided that financial statements covering four reporting periods from September 2025 through June 2026 “should no longer be relied upon.” Separately, Franklin Templeton filed two Bitcoin-linked ETF proposals this week.
The company also plans to reverse gains and losses previously recorded on the Bitcoin balances. It has not provided a date for revised reports. Management continues to review its financial reporting controls for possible weaknesses.
Company Reviews Cash Position
Datavault had previously treated the Bitcoin balance as funds available to support operations. With that balance removed from its assets and Scilex’s payment still uncertain, management is reassessing whether it has sufficient resources to continue operating. A separate tokenized stock trading proposal has also faced issuer objections.
The company has discussed the accounting changes with its current and former auditors. It warned that further errors may emerge during the review and said it will file corrected statements with the Securities and Exchange Commission.
