Datavault AI Shares Drop Up to 48% as Biconomy Bitcoin Withdrawal Stalls
Datavault AI shares fell 37% to 48%, trading around $0.07, after the company said a Bitcoin withdrawal from Biconomy has been pending four months and four periods of financials can no longer be relied upon.
Datavault AI (Nasdaq: DVLT) shares fell 37% to 48% on October 27, trading around $0.07. It was the first trading day after the company disclosed that a Bitcoin withdrawal from Biconomy has been pending for four months. Some reports put the drop at nearly 50%.
The disclosure came in an SEC Form 8-K filed on October 26, 2026. Four sets of financials should no longer be relied upon, Datavault said: Q3 2025, full-year 2025, Q1 2026 and Q2 2026. The company plans to restate all four periods.
How the Bitcoin got stuck
The problem traces to a September 2025 equity purchase agreement with Scilex Holding Co. (NASDAQ: SCLX). Under the $150 million deal, 1,309.04 BTC was credited to Datavault's account that month.
Datavault later sold 491.431 BTC back to Scilex for about $40.5 million in cash. The rest sits on Biconomy. The withdrawal request had gone unanswered for four months as of the filing date.
Datavault concluded the Bitcoin did not qualify as a digital asset. It will classify the holding as a subscription receivable instead.
The restatement hit
Estimated asset reductions:
- $8.1M at Sept 30, 2025
- $92.2M at Dec 31, 2025
- $57.1M at March 31, 2026
- $49.0M at June 30, 2026
No timeline. Datavault has not said when, or whether, the remaining Bitcoin will become accessible. Until revised financials are filed, investors lack reliable numbers covering about a year.
What it means
The reclassification could draw attention to how both Datavault and Scilex accounted for the deal.
In the same period as the restatement news, Datavault announced 13 US patent milestones for its WiSA wireless audio portfolio. The company positions itself around data and tokenization technology and owns that portfolio.
The case is a reminder of counterparty risk for public companies holding crypto on third-party platforms. A balance credited to an account is not the same as Bitcoin you can move, and here that gap wiped tens of millions of dollars from reported assets. For a related look at how public companies handle crypto on their balance sheets, see Bitmine's $45.9M share buyback alongside its ETH purchases.
