Datavault AI stock plummets 50% after firm says it cannot withdraw bitcoin tied to $150 million deal

Datavault AI Inc. (DVLT) shares plunged nearly 50% on Tuesday after the company disclosed that it has been unable to withdraw a significant amount of bitcoin Bitcoin (BTC) from a third-party wallet maintained by Bitconomy exchange.

DVLT closed near $0.067 on Tuesday, down 49.6% from the prior day's closing price of $0.133. Nearly 250 million shares changed hands on the day, an eightfold increase from the prior trading day.

In a Form 8-K filed with the Securities and Exchange Commission on Oct. 26, the company said more than a year of financial statements cannot be relied upon because of an accounting error from a large equity transaction involving bitcoin.

The issue centers on a September 2025 securities purchase agreement with Scilex Holding Co., under which Scilex agreed to buy 15 million shares of Datavault AI common stock and a pre-funded warrant covering more than 263.9 million shares for $150 million, payable in bitcoin — approximately 1,328.43 BTC at a rate of $112,915.52 per bitcoin. 

Bitcoin was credited to a company digital wallet at Biconomy Pte. Ltd. through an offchain transfer. Between September 2025 and January 2026, Datavault AI sold a portion of the credited Bitcoin back to Scilex for about $40.5 million in cash.

In June 2026, the company requested to withdraw bitcoin from the Biconomy wallet to an external account. As of Oct. 26, Datavault said it has been unable to complete the withdrawal. The filing provided no further explanation on why it was unable to do so.

The Block has reached out to Datavault AI and Scilex for comment.

Uncertainty

Datavault AI determined that the bitcoin associated with the Scilex transaction did not meet the requirements for recognition as a company digital asset, noting that the amounts should instead have been recorded as a subscription receivable from the equity issuance, presented as a reduction of stockholders’ equity. 

Management is reassessing its going-concern evaluation because it previously recognized bitcoin balances as a source of liquidity, and collection of amounts from Scilex remains uncertain. The company said it intends to restate the affected financial statements but has not yet determined the timing of those filings.

It added that the restatements are expected to reduce its total assets by $8.1 million, $92.2 million, $57.1 million, and $49 million as of Sept. 30, 2025, Dec. 31, 2025, March 31, 2026, and June 30, 2026, respectively.