Datavault AI told investors that a June request to pull its bitcoin off the exchange Biconomy has not been completed, and that four of its financial reports, linked to a $150 million share deal with Scilex, will be restated. The stock fell by about half, and the company is weighing whether it can continue as a going concern.
Datavault says its bitcoin has been stuck at Biconomy since June
Shares of Nasdaq-listed Datavault AI fell more than 50% on Tuesday and closed at $0.06, Decrypt reported. The drop followed a disclosure that the company has been unable to retrieve bitcoin it holds at the exchange Biconomy. Datavault further stated that investors should no longer rely on four sets of its financial statements.
The news came in a Form 8-K dated Oct. 26. Datavault said it asked in June to move the coins to an external account and has been "unable to complete the withdrawal." According to Decrypt, the filing does not say what is holding the transfer up.
How a bitcoin payment for shares was put together
The coins trace to a Sept. 25, 2025 agreement. Under that agreement, Scilex Holding, which makes pain medicines, committed $150 million in bitcoin in exchange for 15 million Datavault shares plus a pre-funded warrant for a further 263.9 million shares. Such a warrant lets its holder buy shares later, with almost all of the price settled at the outset. The Block describes the same arrangement as a deal under which Scilex agreed to buy Datavault shares for $150 million, payable in bitcoin.
At $112,915.52 per bitcoin, the price came to about 1,328.43 BTC. Decrypt reported that Scilex credited 1,309.04 BTC to Datavault's Biconomy account on Sept. 26 and Nov. 25, 2025. That figure reflects a 19.39 BTC deduction for cash advances Scilex had already made.
Those credits were off-chain. The exchange adjusted balances on its own books, and no coins moved across the Bitcoin blockchain. In practice, such a balance is a claim on the exchange rather than coins in a wallet the company controls.
The numbers behind the restatement
After a review, Datavault decided the coins did not count as a digital asset it owned. It will instead record the transaction as a subscription receivable, an amount a purchaser still owes on freshly issued shares. The receivable will reduce stockholders' equity, and Datavault also plans to undo the crypto gains and losses it recorded for the coins.
- Datavault sold 491.431 BTC back to Scilex, also off-chain, between Sept. 26, 2025 and Jan. 30, 2026 for about $40.5 million in cash. That cash will reduce what Scilex owes.
- Datavault expects reported total assets to be lower by $8.1 million on Sept. 30, 2025, by $92.2 million at year-end 2025, by $57.1 million on March 31 and by $49 million on June 30.
- The restatements cover the 2025 annual report and three quarterly reports filed between November 2025 and August 2026.
- Decrypt reports that Scilex paid an effective $0.5378 per share under the 2025 agreement.
Scilex links, a term sheet and a going-concern review
Scilex's own quarterly filing shows Biconomy was involved from the start. On Sept. 23, 2025, Scilex disposed of 12.5 million shares in its subsidiary Semnur Pharmaceuticals to Biconomy, receiving $200 million in bitcoin, it said. It then used $150 million of that to buy Datavault stock.
A binding term sheet signed by Scilex on June 24, 2026 covers the purchase of 837 BTC from Datavault's Biconomy wallet at a price of $50 million, pending a definitive agreement. Scilex would pay $30 million at first and spread the other $20 million over quarterly installments ending Dec. 31, 2028, using either cash or its own securities as it chooses. Added to the 491.431 BTC already sold back, the 837 BTC equals the original 1,328.43 BTC.
Datavault had counted the bitcoin balances as a source of liquidity. Management is now reviewing the company's ability to continue as a going concern. The filing calls collection of the amounts owed by Scilex uncertain. Its listed risks include Scilex's creditworthiness, dependence on an outside custodian, compliance with Nasdaq listing rules, and legal or regulatory inquiries.
Where the four outlets agree and where they differ
Decrypt carries the most detail, including the filing dates, coin counts and the Scilex term sheet. CoinDesk focuses on the $92.2 million reduction in reported assets for year-end 2025, which it links to the Biconomy bitcoin that could not be withdrawn. The Defiant stresses the four financial periods to be restated and the $49 million expected to come off June 2026 assets.
The outlets also differ on the size of the share drop. Decrypt says more than 50% and a close of $0.06, CoinDesk and The Block say 50% in their headlines, and The Defiant says nearly 50%. None of the summaries explains how the decline was measured. Decrypt adds that the stock bounced to near $0.085 on Wednesday.
Why custody details matter for bitcoin treasury companies
No outlet links the restatement to the bitcoin price. Even so, the Scilex deal was struck at $112,915.52 per bitcoin, while CoinGecko lists bitcoin at $80,099 after a 4.8% decline over 30 days. Its record high was $126,080 on Oct. 6, 2025. How that gap affects the valuation of the 2025 agreement is not addressed in the reports.
The episode shows why holders of companies with bitcoin on their balance sheets can look at where the coins sit. A filing that names a third-party custodian and describes off-chain credits tells readers that the company relies on that custodian's ability to release funds. Project teams that accept payment in crypto can ask the same question about settlement and withdrawal rights.
What to watch next
Several questions remain open after the disclosure.
- When Datavault files the restated statements. It has warned that the delay might run into its report for the quarter ended Sept. 30, 2026.
- Whether Biconomy releases the coins and why the June withdrawal request has not been completed. The filing gives no reason.
- Whether Scilex and Datavault sign a definitive agreement for the 837 BTC.
- Whether Nasdaq compliance issues, litigation or regulatory inquiries follow the restatement.
Market snapshot
| Asset | Price | 24h | 7d | Market cap |
|---|---|---|---|---|
| Bitcoin (BTC) | $80,099 | -1.4% | -2.1% | $1.61 trillion |
CoinGecko data as of 2026-10-29 (UTC).
FAQ
Why can Datavault AI not access its bitcoin?
Datavault said it asked in June to withdraw its bitcoin from Biconomy to an external account and has been unable to complete the transfer. Decrypt reports that the Form 8-K filed Oct. 26 gives no reason for the delay.
What is Datavault restating?
Datavault will restate its 2025 annual report and three quarterly reports filed between November 2025 and August 2026. It now treats the Scilex deal as a subscription receivable, and expected asset cuts range from $8.1 million to $92.2 million depending on the period.
How much did Datavault AI stock fall?
Decrypt reported a fall of more than 50% on Tuesday to a close of $0.06. CoinDesk and The Block cite 50% in their headlines, while The Defiant says nearly 50%.
Sources
- Decrypt: Bitcoin Treasury Datavault AI Says It Can’t Access Its BTC, Stock Tanks (2026-10-28)
- CoinDesk: Bitcoin treasury Datavault AI plunges 50% after firm says it can’t access its BTC (2026-10-28)
- The Block: Datavault AI stock plummets 50% after firm says it cannot withdraw bitcoin tied to $150 million deal (2026-10-28)
- The Defiant: Datavault Shares Plunge Nearly 50% After Biconomy Bitcoin Disclosure (2026-10-28)
- CoinGecko (market data)
Written by the Coinvote news desk from reporting by Decrypt, CoinDesk, The Block and The Defiant. Not financial advice.
