From Decrypt · By Jose Antonio Lanz
In brief
Datavault AI shares fell 49.55% to $0.067 on Oct. 27 after an SEC filing said the company has been unable to complete a June request to withdraw Bitcoin from Biconomy.
The company will restate four financial reports, cutting reported assets by up to $92.2 million, after reclassifying Bitcoin from a $150 million Scilex stock deal as a subscription receivable.
Management is reassessing its going-concern status because it had counted the Bitcoin as a source of liquidity and says collecting what Scilex owes is uncertain.
Datavault AI shares fell more than 50% on Tuesday to close at $0.06, after the Nasdaq-listed company disclosed that it has been unable to withdraw Bitcoin from the crypto exchange Biconomy since June. The company also said four sets of its financial statements can no longer be relied upon.
The disclosure came in a Form 8-K filed Oct. 26, in which 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 it up.
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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. A pre-funded warrant is a right to buy stock in which nearly the whole price is paid upfront.
At $112,915.52 per Bitcoin, the deal came to about 1,328.43 BTC. Scilex credited 1,309.04 BTC to Datavault's account at Biconomy on Sept. 26 and Nov. 25, 2025, the filing says, a figure that reflects a 19.39 BTC deduction for cash advances Scilex had made.
Those credits were off-chain transfers, meaning the exchange changed balances on its own books rather than moving coins across the Bitcoin 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, money a buyer owes for newly issued stock, shown as a reduction of stockholders' equity, with the $40.5 million in cash reducing what Scilex owes.
BitcoinBTC · USD$81,338−3.68%Oct 21Oct 23Oct 25Oct 27Oct 28$84.2k$82.7k$81.1k$79.6k24h HighHigh$81,69824h LowLow$80,334VolVol$1.0B→Buy Bitcoin with USDTPowered by JupiterPrice data by CoinGeckoCoinGeckoMore Bitcoin news and projections →The restatements are expected to cut total assets by $8.1 million as of Sept. 30, 2025, $92.2 million at the end of 2025, $57.1 million as of March 31, and $49 million as of June 30. They cover the 2025 annual report plus three quarterly reports filed between November 2025 and August 2026, and Datavault expects to reverse the crypto gains and losses it had recorded on the coins.