Datavault AI Bitcoin Restatement: Shares Drop 49.55%

Datavault AI shares closed at $0.067, down 49.55%, after the company said it could not withdraw bitcoin from Biconomy and would restate its results.

Datavault AI just delivered one of the clearest lessons yet in how crypto exposure can distort a public company's balance sheet. The Datavault AI bitcoin restatement erased roughly half the company's market value in a single session, after a filing revealed that bitcoin the firm had counted as its own could not be withdrawn from an exchange. Shares closed at $0.067, down 49.55%, on volume of roughly 244 million shares.

What happened in the Datavault AI bitcoin restatement

The chain of events starts in September 2025, when Scilex Holding Company agreed to purchase $150 million of Datavault shares and warrants using bitcoin. Scilex credited 1,309.04 BTC to Datavault's account at Biconomy through off-chain transfers, meaning the balances shifted inside the exchange rather than moving across Bitcoin's blockchain.

Datavault later sold 491.4 BTC back to Scilex for about $40.5 million in cash. Then, in June, a request to withdraw bitcoin to an external account could not be completed, and per Monday's filing it remained incomplete. Datavault said it has been unable to withdraw bitcoin from Biconomy since June and will restate its financial results.

The accounting correction is the crux. Datavault now says the bitcoin should have been recorded as an amount Scilex owed for the shares, reducing shareholders' equity, rather than sitting among the company's crypto assets. The company expects reported assets to fall by $92.2 million at the end of 2025 and by $49 million as of June 2026.

Why it matters for holders and traders

This is not a story about bitcoin's price. Bitcoin is trading at $80,964.00, up 1.58% over 24 hours on $22.8 billion of volume, so the asset itself is calm. The damage here is about custody, verification and disclosure — three things equity investors rarely scrutinize until something breaks.

The most consequential detail is that Datavault had treated those bitcoin balances as funds it could draw on to keep the business running. It must now revisit that assessment. For anyone holding small-cap stocks with crypto treasuries, that is the question worth asking of every name in the sector:

Is the crypto held directly, or is it a balance on a third-party exchange?
Were the coins received on-chain, or through internal off-chain transfers?
Has the company ever tested a withdrawal to a self-controlled wallet?
Does the balance sheet treat the coins as owned assets or as a receivable?

Datavault's answer to the last question changed after the fact, and the market repriced accordingly.

The Scilex and Biconomy connection

Scilex's own June financial report describes selling $200 million of shares in subsidiary Semnur to Biconomy for bitcoin, then using $150 million of that to buy Datavault securities. So Biconomy sat on both sides of the arrangement: it supplied the bitcoin behind the investment and held the account where Datavault's coins were credited.

CoinDesk said it contacted Biconomy and received no response as of Asian afternoon hours Wednesday. The sources also do not explain why the June withdrawal failed. Until those answers surface, the counterparty risk in this structure remains unresolved rather than disproven.

Market reaction

The equity reaction was severe and fast: a 49.55% decline to $0.067 on roughly 244 million shares traded. That volume relative to a sub-ten-cent price signals heavy turnover and likely a rush for the exits rather than orderly repositioning. Bitcoin, by contrast, showed no stress, which reinforces that this is an issuer-specific event, not a crypto market event.

What to watch next

Three things deserve attention. First, the restated financials themselves — whether the $92.2 million and $49 million reductions land as guided, and what they do to reported equity. Second, any disclosure on Datavault's ability to fund operations now that the bitcoin is no longer counted as available liquidity; going-concern language is the phrase to look for. Third, any statement from Biconomy or Scilex clarifying the status of the coins.

A plausible upside scenario is that the bitcoin is recovered or the receivable is settled, restoring part of the balance sheet. A plausible downside is prolonged uncertainty about liquidity combined with the cost of restatement and potential scrutiny of prior disclosures. Neither outcome is certain, and the filing itself leaves the withdrawal failure unexplained.

FAQ

What is the Datavault AI bitcoin restatement?

It is a correction to Datavault's financial statements. The company says bitcoin received through Scilex's $150 million investment should have been booked as an amount Scilex owed for the shares, cutting shareholders' equity, instead of being reported among Datavault's crypto assets.

Why did Datavault AI shares fall 49.55%?

Shares closed at $0.067 after the filing disclosed that Datavault could not withdraw bitcoin from Biconomy since June and would restate results. Investors also learned the company had counted those balances as funds available to keep the business running and must now revisit that view.

How much bitcoin is involved and where is it held?

Scilex credited 1,309.04 BTC to Datavault's Biconomy account via off-chain transfers, and Datavault sold 491.4 BTC back to Scilex for about $40.5 million in cash. The remaining balance sits at Biconomy, which had not responded to a request for comment.

Market snapshot

Prices at the time of writing (Oct 28, 2026 08:00 UTC).

Bitcoin (BTC): $80,964.00 — 24h +1.58%

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Datavault AI Bitcoin Restatement Wipes Out Half Its Value