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Datavault AI shares plunged 49.6% to about $0.067 after the company disclosed it could not withdraw a significant bitcoin balance from a third-party wallet. The BTC was tied to a $150 million securities deal with Scilex, and nearly 250 million shares changed hands, roughly eight times the prior session's volume. Datavault also said more than a year of financial statements cannot be relied upon because of an accounting error.
Why it matters
The September 2025 agreement called for Scilex to purchase 15 million Datavault shares and a pre-funded warrant covering more than 263.9 million shares for approximately 1,328.43 BTC. The bitcoin was credited to a company wallet through an offchain transfer, and Datavault later sold part of it back to Scilex for about $40.5 million in cash.
Datavault requested a withdrawal from the Biconomy Pte. Ltd. wallet in June 2026 but said it remained unable to complete the transfer as of its Oct. 26 Form 8-K. The filing gave no further explanation. Separately, management determined that the bitcoin did not meet the requirements for recognition as a company digital asset. It should instead have been recorded as a subscription receivable from the equity issuance and presented as a reduction of stockholders' equity.
Market impact
The accounting change directly affects the company's reported liquidity. Datavault is reassessing its going-concern evaluation because it had previously treated bitcoin balances as a source of liquidity, while collection of amounts from Scilex remains uncertain.
The planned restatements are expected 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 company has not determined when the restated filings will be submitted. The sharp share-price drop shows that investors are treating the custody problem, accounting correction and liquidity review as one combined balance-sheet risk.
Frequently asked questions
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Why did Datavault AI shares fall nearly 50%?
Shares fell after Datavault disclosed that it could not withdraw a significant bitcoin balance, flagged accounting restatements and said liquidity remained uncertain.
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How much bitcoin was tied to the Scilex transaction?
The transaction involved approximately 1,328.43 BTC, linked to a $150 million securities purchase agreement with Scilex.
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What problem did Datavault report with its bitcoin wallet?
Datavault requested a withdrawal from the Biconomy wallet in June 2026 but said it remained unable to complete the transfer as of its Oct. 26 Form 8-K.
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Why is Datavault restating its financial statements?
The company determined that the bitcoin did not qualify as a company digital asset and should instead have been recorded as a subscription receivable tied to the equity issuance.
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How could the restatements affect Datavault's balance sheet?
Datavault expects the restatements to reduce total assets by $8.1 million, $92.2 million, $57.1 million and $49 million across four reporting dates.
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