Briefly
- Datavault AI shares fell 49.55% to $0.067 on Oct. 27 after an SEC submitting stated the corporate has been unable to finish a June request to withdraw Bitcoin from Biconomy.
- The corporate will restate 4 monetary stories, slicing reported property by as much as $92.2 million, after reclassifying Bitcoin from a $150 million Scilex inventory deal as a subscription receivable.
- Administration is reassessing its going-concern standing as a result of it had counted the Bitcoin as a supply of liquidity and says amassing what Scilex owes is unsure.
Datavault AI shares fell greater than 50% on Tuesday to shut at $0.06, after the Nasdaq-listed firm disclosed that it has been unable to withdraw Bitcoin from the crypto change Biconomy since June. The corporate additionally stated 4 units of its monetary statements can now not be relied upon.
The disclosure got here in a Type 8-Ok filed Oct. 26, through which Datavault stated it requested a withdrawal to an exterior account in June and has been “unable to finish the withdrawal.” The submitting doesn’t clarify what’s holding it up.
The Bitcoin traces to a Sept. 25, 2025, settlement through which Scilex Holding, a pain-medicine firm, agreed to pay $150 million in Bitcoin for 15 million Datavault shares and a pre-funded warrant masking one other 263.9 million shares. A pre-funded warrant is a proper to purchase inventory through which almost the entire value is paid upfront.
At $112,915.52 per Bitcoin, the deal got here to about 1,328.43 BTC. Scilex credited 1,309.04 BTC to Datavault’s account at Biconomy on Sept. 26 and Nov. 25, 2025, the submitting says, a determine that displays a 19.39 BTC deduction for money advances Scilex had made.
These credit had been off-chain transfers, which means the change modified balances by itself books slightly than shifting cash throughout the Bitcoin blockchain. Between Sept. 26, 2025, and Jan. 30, 2026, Datavault offered 491.431 BTC again to Scilex the identical manner, for about $40.5 million in money.
After reviewing the transaction, Datavault concluded the Bitcoin by no means certified as a digital asset of the corporate. It should as a substitute e-book the deal as a subscription receivable, cash a purchaser owes for newly issued inventory, proven as a discount of stockholders’ fairness, with the $40.5 million in money decreasing what Scilex owes.
BitcoinBTC · USD
$80,066−2.3%
Oct 22Oct 24Oct 25Oct 27Oct 29
$82.0k$81.2k$80.4k$79.6k
24h ExcessiveExcessive$81,698
24h LowLow$79,636
VolVol$1.1B
→The restatements are anticipated to chop whole property by $8.1 million as of Sept. 30, 2025, $92.2 million on the finish of 2025, $57.1 million as of March 31, and $49 million as of June 30. They cowl the 2025 annual report plus three quarterly stories filed between November 2025 and August 2026, and Datavault expects to reverse the crypto features and losses it had recorded on the cash.
Datavault had counted these Bitcoin balances as a supply of liquidity, so administration is reassessing whether or not the corporate can proceed as a going concern, the accounting check for whether or not a enterprise can maintain working and meet its obligations. The submitting says assortment of the quantities owed by Scilex is unsure, and its danger listing consists of Scilex’s creditworthiness, the corporate’s reliance on a third-party custodian, Nasdaq itemizing compliance, and litigation or regulatory inquiries tied to the restatement.
Scilex’s personal quarterly submitting exhibits Biconomy was already a part of the deal. Scilex stated it offered 12.5 million shares of its Semnur Prescription drugs subsidiary to Biconomy on Sept. 23, 2025 for $200 million in Bitcoin, then used $150 million of that to purchase Datavault inventory.
On June 24, 2026, the identical month Datavault says it requested to withdraw its Bitcoin, Scilex signed a binding time period sheet to purchase 837 BTC held in Datavault’s Biconomy pockets for $50 million, topic to a definitive settlement. Scilex agreed to an preliminary $30 million cost and the remaining $20 million in quarterly installments via Dec. 31, 2028, payable in money or Scilex securities at its discretion. The 837 BTC, added to the 491.431 BTC already offered again, equals the 1,328.43 BTC of the unique settlement.
Datavault inventory bounced to close $0.085 on Wednesday. Scilex’s buy value below the 2025 settlement labored out to an efficient $0.5378 per share. Datavault has not stated when it would file the restated statements, and it warned that delays may prolong to its quarterly report for the interval ended Sept. 30, 2026.
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