Datavault AI's stock fell more than 50% to $0.06 on Tuesday after the Nasdaq-listed company disclosed it cannot withdraw Bitcoin from exchange Biconomy since June. The company filed a Form 8-K on Oct. 26 stating it requested a withdrawal to an external account in June and remains "unable to complete the withdrawal." The filing did not explain the cause of the delay.
Datavault received 1,309.04 BTC from Scilex Holding under a Sept. 25, 2025 agreement where Scilex paid $150 million for 15 million Datavault shares and warrants covering 263.9 million additional shares. The transfers occurred off-chain through Biconomy's books rather than across the Bitcoin blockchain. Between Sept. 26, 2025, and Jan. 30, 2026, Datavault sold 491.431 BTC back to Scilex for roughly $40.5 million in cash.
After reviewing the transaction, Datavault concluded the Bitcoin never qualified as a digital asset. The company will reclassify the deal as a subscription receivable, reducing stockholders' equity. Restatements will cut total assets by $8.1 million as of Sept. 30, 2025, $92.2 million at year-end 2025, $57.1 million as of March 31, and $49 million as of June 30. The revisions cover the 2025 annual report and three quarterly reports filed between November 2025 and August 2026.
Datavault had treated the Bitcoin balances as liquidity and is now reassessing whether the company can continue as a going concern. The filing cites uncertain collection of amounts owed by Scilex and lists Scilex creditworthiness, third-party custodian reliance, Nasdaq compliance, and litigation or regulatory inquiries as risks. Datavault stock recovered to near $0.085 on Wednesday.