Companies
Datavault AI Shares Plummet 50% Due to Bitcoin Withdrawal Issues
Datavault AI has faced a severe backlash from investors as its shares plummeted nearly 50% following the company’s announcement regarding its inability to withdraw Bitcoin from Biconomy. The Nasdaq-listed firm disclosed that its request to access the cryptocurrency has been pending for four months, leading to major concerns about its financial reporting and liquidity.
On October 26, 2026, Datavault filed an SEC Form 8-K, revealing that several of its financial statements could no longer be relied upon. This includes financials from Q3 2025, full-year 2025, Q1 2026, and Q2 2026. The issues stem from a September 2025 equity purchase agreement with Scilex Holding Co., where Datavault was credited with 1,309.04 BTC. However, a withdrawal request made in June 2026 remains unresolved.
In light of these developments, Datavault has decided to reclassify the Bitcoin as a subscription receivable rather than a digital asset, which will significantly reduce its reported assets. The anticipated adjustments are substantial, with reductions of $8.1 million as of September 30, 2025, and as much as $92.2 million by December 31, 2025.
This situation has raised critical questions about the risks associated with third-party custody of cryptocurrencies. Datavault’s predicament highlights the importance of having reliable access to digital assets, as recorded balances do not guarantee liquidity. Investors are now left waiting for clarity regarding the Bitcoin withdrawal and the company’s revised financial statements.
FAQ
What caused Datavault AI's shares to plummet?
Datavault AI's shares dropped nearly 50% due to the company's announcement of its inability to withdraw Bitcoin from Biconomy, which has been pending for four months.
What financial statements are affected by Datavault's recent issues?
The financial statements affected include those from Q3 2025, full-year 2025, Q1 2026, and Q2 2026, as Datavault disclosed that several of these could no longer be relied upon.
How much Bitcoin is Datavault unable to withdraw?
Datavault is unable to withdraw 1,309.04 BTC, which was credited to them as part of a September 2025 equity purchase agreement with Scilex Holding Co.
What changes has Datavault made regarding its Bitcoin assets?
Datavault has decided to reclassify the Bitcoin as a subscription receivable rather than a digital asset, which will significantly reduce its reported assets.
What are the potential financial impacts of these issues on Datavault?
The anticipated adjustments could lead to substantial reductions in reported assets, amounting to $8.1 million as of September 30, 2025, and as much as $92.2 million by December 31, 2025.