The shares of Nasdaq-traded Datavault AI (DVLT) have declined almost 50% following the company’s announcement that it failed to withdraw its Bitcoin (BTC) from the cryptocurrency exchange Biconomy for about four months.
On Tuesday, Oct. 27, the DVLT shares finished the day’s trading session at a value of just $0.067 per share, losing 49.55% in a single day. Additionally, the volume of trades surged, with around 244 million shares traded versus 30 million in the previous session.
Per Datavault AI’s filing on October 26 with the U.S. Securities and Exchange Commission (SEC), the company applied for the withdrawal of its Bitcoin from a digital wallet held by Biconomy Pte. Ltd. to another account in June 2026.
However, as of October 26, it had failed to complete this withdrawal. The firm did not elaborate on the reasons for the failure or the amount of Bitcoin involved.
$150 million Bitcoin deal
The issue with the Bitcoin withdrawal follows a major investment deal for Bitcoin-denominated investments in September 2025 between Datavault AI and Scilex Holding Company.
In particular, Scilex agreed to pay $150 million to buy 15 million shares of Datavault, as well as a pre-funded warrant for approximately 263.9 million additional shares.
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The deal was worth around 1,328.43 BTC. At that time, one Bitcoin was priced at $112,915.52.
Per the firm’s filing with the SEC, Scilex transferred 1,309.04 BTC to Datavault’s wallet on Biconomy via off-chain transfers in September and November 2025. The difference included cash advances granted earlier.
Datavault sold 491.431 BTC to Scilex between September 2025 and January 2026, also through off-chain transfers. Datavault received approximately $40.5 million in cash.
Significant accounting issues
Datavault disclosed that its previously issued financial statements for the third quarter of 2025, the full year of 2025, and the first and second quarters of 2026 must not be relied upon.
After an internal review, the company determined that the Bitcoin related to the investment with Scilex must not be classified as a digital asset on the balance sheet.
Instead, Datavault will recognize a subscription receivable associated with the issuance of shares.
Meanwhile, the company admitted that it had previously recorded the Bitcoin balances as digital assets, which were viewed as a source of the company’s liquidity.
At this point, the exact reason for the unsuccessful Bitcoin withdrawal remains unknown.
