Datavault AI shares plunged 49.55% on Oct. 27 after the company disclosed that it had been unable to complete a bitcoin withdrawal from crypto exchange Biconomy requested in June 2026.
In an Oct. 26 securities filing, Datavault said four previously issued financial statements should no longer be relied upon. It expects the corrections to reduce total assets reported for June 30, 2026, by $49 million because bitcoin associated with a $150 million equity financing did not qualify for recognition as its digital asset.
The change leaves shareholders facing uncertainty over collection of the financing proceeds, rather than simply fluctuations in bitcoin's price. Datavault said it would record a subscription receivable — money owed for issued shares — as a reduction of stockholders' equity. Management is also reassessing earlier going-concern evaluations because it had treated the bitcoin as available liquidity and collection from investor Scilex is uncertain.
DVLT closed at $0.0670, down from the previous close of $0.1328, according to Yahoo Finance market data, which listed its market capitalization at approximately $63.6 million.
An Offchain Credit, Then an Uncompleted Withdrawal
Datavault, a provider of data monetization and real-world asset tokenization technologies, agreed on Sept. 25, 2025, to sell Scilex Holding 15 million shares and a pre-funded warrant for another 263,914,094 shares. The $150 million consideration was payable in approximately 1,328.43 BTC at an agreed rate of $112,915.52 per bitcoin.
According to the new filing, Scilex credited 1,309.04 BTC to Datavault's Biconomy wallet in September and November 2025 through offchain transfers, after a 19.39 BTC reduction for cash advances. That was an exchange-account credit, rather than an onchain delivery to an external wallet.
Datavault said it subsequently sold 491.431 BTC credited to that account back to Scilex through offchain transfers for approximately $40.5 million in cash between September 2025 and January 2026. Those disclosed transactions imply a net credit of 817.609 BTC, according to The Defiant's calculation; the filing does not specify the quantity in the attempted June withdrawal.
The company said it requested a transfer from Biconomy to an external account in June and, as of the filing, had been “unable to complete the withdrawal.” Its disclosure does not explain the reason or establish an exchange-wide withdrawal suspension.
Datavault expects to reverse associated crypto gains and losses as part of the restatement. Its preliminary estimates also include a $92.2 million reduction in assets reported at the end of 2025.
The affected reports cover the September 2025 quarter, full-year 2025, and the March and June 2026 quarters. Datavault plans to file restated financial statements but has not determined when those filings will be made.