Datavault shares halve over inaccessible bitcoin and restatements

Datavault AI, a Nasdaq-listed company, saw its shares lose nearly half their value after revealing it could no longer withdraw bitcoin from Biconomy and having to restate financial statements for several reporting periods. The stock plummeted to $0.067 on Tuesday, with around 244 million shares traded following the news. The sell-off came after the company disclosed accounting errors linked to a $150 million share purchase agreement with Scilex Holding, detailed in an October 26 regulatory filing.

Datavault now estimates the error will reduce its total assets by $92.2 million as of December 31, 2025, and $49 million as of June 30, 2026. Management is also reviewing if its previous assessment of continuing operations is still valid. The company reported attempting to withdraw bitcoin from a Biconomy digital wallet in June, but the transfer to an external account was incomplete when it filed its SEC report.

The filing did not specify why the withdrawal failed or when access might be restored, though it does not confirm whether the bitcoin was stolen or permanently lost. The shortfall originated from a September 25, 2025, agreement where Scilex agreed to buy 15 million Datavault shares and a warrant for 263.9 million additional shares, with the $150 million payment due in bitcoin.

The company previously recorded the credited balances as digital assets but now considers the transaction should have created a subscription receivable, a reduction of shareholders' equity. The cash obtained from subsequent bitcoin transactions would lower the receivable amount from Scilex. The total asset reductions also include $8.1 million and $57.1 million as of September 30, 2025, and March 31, 2026, respectively.

These figures are still preliminary and unaudited. Datavault warned further errors could emerge after its review. The company's audit committee and management declared on October 20 that previously released statements for periods ending September 2025, December 2025, and the first two quarters of 2026 are no longer reliable. Datavault intends to restate these accounts but has not set a timetable for issuing the amended filings.

The accounting change impacts liquidity assumptions, as management had previously treated the bitcoin balances as a potential funding source for operations. This uncertainty affects their evaluation of the company's ability to meet obligations and remain operational. The company is still assessing whether the errors indicate material weaknesses in internal controls over financial reporting and has consulted its current auditor, CBIZ CPAs, and former auditor BPM.

The filing highlighted additional risks related to reliance on a third-party custodian, collectability from Scilex, Biconomy cooperation, and potential regulatory compliance issues, as well as the risk of litigation and inquiries. Nasdaq-listed Datavault AI shares (ticker: DVLT) continue to trade on the Nasdaq Capital Market following the restatement.