Datavault AI says it has been unable to withdraw Bitcoin from the exchange Biconomy since June, and its shares fell sharply. The company will restate four sets of financial statements and is reassessing whether it can continue as a going concern.
Datavault AI shares fell 49.55% to $0.067 on Oct. 27 after the Nasdaq-listed company disclosed that it has been unable to withdraw Bitcoin from Biconomy. In an SEC filing, Datavault said it requested a withdrawal to an external account in June and has been "unable to complete the withdrawal".
The filing does not explain what is holding the withdrawal up. The company also said four sets of its financial statements can no longer be relied upon.
A $150 million Bitcoin deal at the root
The Bitcoin traces to a Sept. 25, 2025, agreement in which Scilex Holding, a pain-medicine company, agreed to pay $150 million in Bitcoin for 15 million Datavault shares and a pre-funded warrant covering another 263.9 million shares. Scilex credited 1,309.04 BTC to Datavault's account at Biconomy, according to the filing, and the credits were off-chain transfers, meaning the exchange changed balances on its own books rather than moving coins across the blockchain.
Between Sept. 26, 2025, and Jan. 30, 2026, Datavault sold 491.431 BTC back to Scilex the same way, for about $40.5 million in cash. After reviewing the transaction, Datavault concluded the Bitcoin never qualified as a digital asset of the company. It will instead book the deal as a subscription receivable, shown as a reduction of stockholders' equity.
Restatements cut reported assets
As a result, the restatements are expected to cut total assets by $92.2 million at the end of 2025. They cover the 2025 annual report plus three quarterly reports, and Datavault expects to reverse the crypto gains and losses it had recorded on the coins.
Datavault had counted those Bitcoin balances as a source of liquidity, so management is reassessing whether the company can continue as a going concern. The filing says collection of the amounts owed by Scilex is uncertain.
Scilex term sheet and stock bounce
On June 24, 2026, Scilex signed a binding term sheet to buy 837 BTC held in Datavault's Biconomy wallet for $50 million, subject to a definitive agreement. Datavault has not said when it will file the restated statements, and it warned that delays could extend to its quarterly report for the period ended Sept. 30, 2026.
Datavault stock bounced to near $0.085 on Wednesday.
Source: Decrypt
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