Datavault AI (DVLT) shares fall nearly 50% after Bitcoin withdrawal from Biconomy stalls
In brief
- DVLT closed at $0.067 on Oct. 27, a 49.55% single-day loss, per U.Today.
- Datavault's Oct. 26 SEC filing said a Bitcoin withdrawal requested in June still hadn't completed.
- The filing disclosed neither a reason for the failure nor the amount of Bitcoin involved.
- Financial statements from Q3 2025 through Q2 2026 shouldn't be relied upon, Datavault said.
A withdrawal that hasn't cleared
According to Datavault AI's Oct. 26 filing with the SEC, as reported by U.Today, the company applied in June 2026 to move its Bitcoin from a digital wallet held by Biconomy Pte. Ltd. to another account. It still hadn't completed that withdrawal as of Oct. 26.
The filing gave no reason for the failure and no figure for the amount of Bitcoin involved.
Trading jumped as the news landed. Around 244 million shares changed hands, U.Today reported, compared with 30 million in the previous session.
Where the Bitcoin came from
The coins go back to a September 2025 deal with Scilex Holding Company for Bitcoin-denominated investments. Scilex agreed to pay $150 million for 15 million Datavault shares, plus a pre-funded warrant for roughly 263.9 million more. The deal was worth about 1,328.43 BTC (Bitcoin was priced at $112,915.52 at the time).
Per the filing, Scilex sent 1,309.04 BTC to Datavault's Biconomy wallet through off-chain transfers in September and November 2025; earlier cash advances covered the difference. Datavault then sold 491.431 BTC to Scilex between September 2025 and January 2026, also off-chain, and received about $40.5 million in cash.
A balance-sheet reclassification
The filing also said Datavault's previously issued financial statements for Q3 2025, full-year 2025, and Q1 and Q2 2026 shouldn't be relied upon.
After an internal review, the company decided the Bitcoin tied to the Scilex investment shouldn't be classified as a digital asset on its balance sheet. It'll recognize a subscription receivable tied to the share issuance instead. Datavault acknowledged it had previously recorded those Bitcoin balances as digital assets (which it viewed as a source of liquidity).
That's the company's own reclassification, laid out in its own filing. Why the withdrawal from Biconomy hasn't gone through is still unknown, U.Today reported.
Frequently asked questions
Why did Datavault AI stock drop almost 50%?
The drop followed Datavault AI's disclosure that it hasn't been able to withdraw its Bitcoin from the exchange Biconomy for about four months. U.Today reported the stock closed at $0.067 on Oct. 27, a 49.55% single-day loss, on volume of around 244 million shares.
How did Datavault AI acquire the Bitcoin held on Biconomy?
The Bitcoin came from a September 2025 investment deal with Scilex Holding Company worth about 1,328.43 BTC. Per Datavault's SEC filing, Scilex transferred 1,309.04 BTC to Datavault's Biconomy wallet through off-chain transfers in September and November 2025, and earlier cash advances covered the difference.
What accounting change did Datavault AI announce?
After an internal review, Datavault determined the Bitcoin tied to the Scilex investment shouldn't be classified as a digital asset on its balance sheet. It will instead recognize a subscription receivable tied to the share issuance, and it said earlier financial statements from Q3 2025 through Q2 2026 shouldn't be relied upon.
