Datavault AI shares tumble after bitcoin withdrawal issue clouds $150 million Scilex deal

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Datavault AI bitcoin issue

Highlights

Datavault AI discloses its financials from September 2025 onward are unreliable due to a bitcoin-related accounting error from a $150 million Scilex transaction.
Datavault AI cannot withdraw credited bitcoin from its Biconomy wallet as of October 26, raising doubts over $40.5 million in post-deal liquidity and proper asset classification.
Shares plunge 49.6% to $0.067 after the restatement warning, with planned adjustments set to cut total assets by $8.1–$92.2 million across 2025–2026 balance sheets.

Filing details and accounting fallout

According to The Block, as disclosed in a Form 8-K filed with the Securities and Exchange Commission on Oct. 26, Datavault AI says more than a year of financial statements can no longer be relied upon because of an accounting error tied to a large equity transaction involving bitcoin.

The issue stems from a September 2025 securities purchase agreement with Scilex Holding Co., under which Scilex agrees to buy 15 million shares of Datavault AI common stock and a pre-funded warrant covering more than 263.9 million shares for $150 million, payable in bitcoin. The filing says that amount equates to about 1,328.43 BTC at a rate of $112,915.52 per bitcoin.

Datavault AI says the bitcoin is credited to a company digital wallet at Biconomy Pte. Ltd. through an offchain transfer. Between September 2025 and January 2026, the company sells a portion of that credited bitcoin back to Scilex for about $40.5 million in cash.

In June 2026, Datavault AI requests to withdraw bitcoin from the Biconomy wallet to an external account. As of Oct. 26, the company says it is unable to complete the withdrawal, and the filing gives no further explanation for the failed transfer.

The company determines that the bitcoin associated with the Scilex transaction does not meet the requirements for recognition as a company digital asset. Instead, Datavault AI says the amounts should have been recorded as a subscription receivable from the equity issuance, presented as a reduction of stockholders' equity.

Market reaction and balance sheet pressure

Investors react sharply to the disclosure, sending Datavault AI shares down nearly 50% on Tuesday. The stock closes near $0.067, down 49.6% from the previous session's close of $0.133, while nearly 250 million shares change hands, roughly eight times the prior trading day's volume.

Management says it is reassessing its going-concern evaluation because it previously recognized bitcoin balances as a source of liquidity, while collection of amounts from Scilex remains uncertain. Datavault AI says it plans to restate the affected financial statements but has not yet determined when those filings will be completed.

The expected restatements are set to reduce total assets by $8.1 million as of Sept. 30, 2025, $92.2 million as of Dec. 31, 2025, $57.1 million as of March 31, 2026, and $49 million as of June 30, 2026. The Block says it has reached out to Datavault AI and Scilex for comment.

Our earlier coverage of the AI-linked tech sell-off described a sharp pullback across semiconductors and computing-infrastructure names as oil prices surged and investors grew more sensitive to inflation and the Fed’s rate path. The piece highlighted how concerns over stretched valuations and financing conditions were weighing on companies tied to AI buildouts, fueling volatility and prompting investors to reassess risk in the sector.

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