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Datavault AI, a Nasdaq-listed company that held Bitcoin as a treasury asset, disclosed that a withdrawal request it made to the exchange Biconomy in June 2026 has still not gone through, Decrypt reported. The company’s shares closed at $0.067 on Oct. 27, a drop of 49.55%, and it told investors that four sets of previously published financial statements should no longer be trusted.
The details came in a Form 8-K filed Oct. 26, which states that Datavault asked to move its Bitcoin to an external account in June and was “unable to complete the withdrawal” — wording Decrypt reported directly, noting the filing gives no reason for the holdup. Bitcoinist reported the same disclosure and added that the document does not establish the coins were stolen or permanently lost.
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Key facts
- Datavault shares closed at $0.067 on Oct. 27, down 49.55%, per Decrypt; Bitcoinist put the close at roughly $0.067 as well and described the drop as near 50%.
- The Bitcoin came from a Sept. 25, 2025 agreement in which Scilex Holding agreed to pay $150 million in Bitcoin for 15 million Datavault shares plus a pre-funded warrant on another 263.9 million shares, a deal worth about 1,328.43 BTC at $112,915.52 per coin.
- Scilex credited 1,309.04 BTC to Datavault’s Biconomy account through off-chain transfers on Sept. 26 and Nov. 25, 2025; the figure reflects a 19.39 BTC deduction for cash advances.
- Between Sept. 26, 2025 and Jan. 30, 2026, Datavault sold 491.431 BTC back to Scilex for about $40.5 million in cash.
- Restatements are expected to cut total assets by $8.1 million at Sept. 30, 2025, $92.2 million at year-end 2025, $57.1 million at March 31, 2026 and $49 million at June 30, 2026, according to both outlets.
Accounting treatment flips to a receivable
After reviewing the transaction, Datavault decided the Bitcoin never qualified as a digital asset it owned. The deal will instead be booked as a subscription receivable — money a buyer owes for newly issued stock — shown as a reduction of stockholders’ equity, with the $40.5 million in cash lowering what Scilex owes. Datavault also expects to reverse crypto gains and losses it had recorded on the coins.
The restatements cover the 2025 annual report and three quarterly reports filed between November 2025 and August 2026. Bitcoinist reported that the adjustments remain preliminary and could change as the review concludes.
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The June withdrawal attempt was not the only event that month. Scilex signed a binding term sheet on June 24, 2026 to buy 837 BTC held in Datavault’s Biconomy wallet for $50 million, subject to a definitive agreement. Scilex agreed to pay $30 million upfront and the remaining $20 million in quarterly installments through Dec. 31, 2028, in cash or Scilex securities at its discretion. The 837 BTC plus the 491.431 BTC already sold back equals the 1,328.43 BTC of the original deal, Decrypt reported.
Why it matters
Datavault had treated the Bitcoin balances as a source of liquidity, so management is now reassessing whether the company can keep operating as a going concern — the accounting test for meeting obligations. The filing flags uncertainty over collecting what Scilex owes, alongside risks including Scilex’s creditworthiness, reliance on a third-party custodian, Nasdaq listing compliance and litigation or regulatory inquiries tied to the restatement.
Bitcoinist framed the episode as a cautionary case for other companies putting Bitcoin on their balance sheets: a recorded crypto balance does not guarantee a business can access the funds when it needs them. The story sits inside a weaker market — the Bitcoin price shown alongside Decrypt’s report was $81,338, down 3.68% over 24 hours.
Datavault shares rebounded to near $0.085 on Wednesday. Under the 2025 agreement, Scilex’s effective purchase price worked out to $0.5378 per share.
What to watch
Datavault has not said when the restated statements will be filed, and it warned that delays could push back its quarterly report for the period ended Sept. 30, 2026. Bitcoinist said it will watch for clarification on the Biconomy withdrawal and any progress on a definitive Scilex agreement for the 837 BTC.
This article is not financial advice; crypto and equity markets are volatile and uncertain.
Sources: Decrypt, Bitcoinist
