Shares of Nasdaq-listed Datavault AI crashed nearly 50% on Tuesday after a $150 million Bitcoin deal turned into a major accounting controversy.
The company revealed that millions of dollars in Bitcoin were stuck on a crypto exchange, while four of its financial reports could no longer be trusted.
Datavault stock price plunged, with roughly 244 million shares changing hands. The stock now trades about 88% below the price a major investor agreed to pay last year.
How a $150 Million Bitcoin Deal Went Wrong
The controversy began in September 2025, when painkiller maker Scilex Holding agreed to purchase $150 million in Datavault shares and warrants using Bitcoin.
Just two days earlier, Scilex had agreed to exchange $200 million worth of shares in its Semnur Pharmaceuticals subsidiary for Bitcoin. It also hired crypto exchange Biconomy to support its plans.
“Biotech is a market we know well,” Scilex CEO Henry Ji said at the time, promising to guide Datavault’s expansion.
But the Bitcoin never moved on-chain. Instead, Scilex credited 1,309 BTC to Datavault’s Biconomy account through internal exchange records.
Datavault later sold 491 BTC back to Scilex for $40.5 million. The remaining 818 BTC are still inaccessible after a withdrawal request made in June.
Investors Face a $92 Million Accounting Shock
According to an October 26 SEC filing, Datavault now says those Bitcoin balances should never have been recorded as company assets.
Instead, they should have been treated as money owed by Scilex, potentially reducing previously reported assets by $92.2 million.
Four financial statements must be corrected. Datavault is also reassessing whether it has sufficient resources to continue operating.
“One of the ugliest 8-Ks you’ll ever see,” commented VanEck’s Matthew Sigel.
The findings remain preliminary, and Datavault still holds a claim against Scilex. The filing offers no explanation for the stalled withdrawal.
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