Datavault AI shares plunged nearly 50% to $0.067 on October 27, 2026, after an SEC filing revealed the company has been unable to withdraw Bitcoin from the Biconomy exchange since June 2026. The funds stem from a $150 million deal with Scilex Holding Company. Datavault announced that four quarters of financial statements must be restated, reclassifying the Bitcoin as a subscription receivable and cutting reported assets by up to $92.2 million.
Stock crash from unprocessed withdrawal
- ▪Datavault AI disclosed in an October 26, 2026 SEC filing that its June 2026 request to withdraw Bitcoin from the Biconomy exchange to an outside account remained unprocessed
- ▪Datavault AI shares fell 49.55% to close at $0.067 on October 27, 2026, with trading volume reaching approximately 244 million to 250 million shares
- ▪Bitcoin developer Jameson Lopp posted on X that Datavault AI's stock crashed because the company informed investors it could not withdraw Bitcoin from Biconomy while the exchange held its funds
Scilex Bitcoin transactions
- ▪In June 2026, Scilex Holding Company and Datavault AI signed a term sheet for Scilex to acquire 837 Bitcoin for $50 million, a term sheet Datavault AI warned may never close
- ▪In September 2025, Scilex Holding Company agreed to purchase 15 million Datavault AI shares and a warrant for 263.9 million shares for $150 million payable in Bitcoin
- ▪Between September 2025 and January 2026, Datavault AI sold 491.431 Bitcoin from its Biconomy balance back to Scilex Holding Company for $40.5 million in cash
- ▪Scilex Holding Company acquired its Bitcoin by selling $200 million of shares in its subsidiary Semnur Pharmaceuticals to Biconomy, allocating $150 million of that Bitcoin to the Datavault AI stock purchase
- ▪Scilex Holding Company credited 1,309.04 Bitcoin to Datavault AI's Biconomy wallet via off-chain internal transfers rather than on-chain Bitcoin blockchain transactions
Financial statement restatements
- ▪Datavault AI disclosed that it intends to restate the financial statements affected by the Scilex Bitcoin accounting error but has not yet determined the timing of those filings
- ▪Datavault AI is reclassifying the Bitcoin tied to the $150 million Scilex Holding Company stock purchase as a subscription receivable, which presents as a reduction of stockholders' equity rather than a cryptocurrency asset
- ▪Datavault AI determined that four quarters of financial statements from Q3 2025 through Q2 2026 can no longer be relied upon and must be restated
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