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Datavault AI to wipe bitcoin from balance sheet after withdrawal stalls at Biconomy

Nasdaq-listed Datavault AI revealed it has been unable to withdraw its bitcoin from Biconomy since June, prompting plans to restate four sets of financial statements and reassess its ability to continue operating.

A glowing 3D rendering of a gold bitcoin token.
Image: @coinbureau

Nasdaq-listed Datavault AI announced in an Oct. 26 regulatory filing that it will restate four periods of financial statements to remove all previously reported bitcoin. The decision came after an attempted withdrawal requested in June to transfer bitcoin from its wallet at Biconomy PTE. Ltd. to an external account remained incomplete. The filing provided no explanation for why the transfer could not be completed, and its audit committee determined on Oct. 20 that investors should no longer rely on reports from the third quarter of 2025 through the second quarter of 2026.[3][1]

The accounting reversal stems from a September 2025 transaction in which Scilex Holding agreed to purchase Datavault stock and a pre-funded warrant for $150 million payable in bitcoin. Scilex credited 1,309.04 BTC to Datavault's Biconomy wallet via off-chain transfers, and Datavault later sold 491.431 BTC back to Scilex for approximately $40.5 million. Datavault now states that the holdings never met criteria for recognition as digital assets and will instead treat the remaining sum as a receivable from Scilex, recorded as a reduction of stockholders' equity.[3][1]

The restatement is expected to reduce Datavault's reported total assets by $92.2 million at year-end 2025 and by $49.0 million as of June 30, 2026. Management noted it is re-evaluating its going-concern status because collecting amounts owed by Scilex is uncertain, while citing the need to secure cooperation from Biconomy as a risk factor. Biconomy has issued no public statement and did not respond to questions reported by CoinDesk. Following the disclosure, Datavault shares tumbled nearly 50% to roughly $0.067 on Oct. 27 before rebounding about 31% on Wednesday to close near $0.088.[3][2][1]

Key facts

  • Datavault AI disclosed in an Oct. 26 8-K that a June request to withdraw bitcoin from its wallet at Biconomy PTE. Ltd. remains incomplete, without stating why.
  • The company will restate financial statements for Q3 2025, full-year 2025, and Q1 and Q2 2026 to remove all reported bitcoin.
  • The planned restatement is expected to reduce Datavault's assets by $92.2 million at Dec. 31, 2025, and by $49.0 million at June 30, 2026.
  • The bitcoin originated from a September 2025 deal with Scilex, which credited 1,309.04 BTC to Datavault's Biconomy wallet, of which 491.431 BTC was later sold back for about $40.5 million.
  • Datavault determined the bitcoin did not qualify for recognition as digital assets and will reclassify the balance as a receivable from Scilex, shown as a reduction of stockholders' equity.
  • Datavault management is reassessing its going-concern evaluation due to uncertainty over collecting amounts owed by Scilex.
  • Datavault AI shares fell nearly 50% to close around 6.7 cents on Oct. 27 before rebounding about 31% to near $0.088 on Wednesday.

Sources · 3 sources

  1. CB

    Coin Bureau@coinbureauPost on X ·

    🚨 SHOCKING: Datavault AI shares plunged nearly 50% on October 27 after disclosing it couldn’t withdraw Bitcoin from an exchange. Nasdaq-listed $DVLT says a withdrawal requested in June remained incomplete as of its October 26 filing. Scilex originally credited 1,309 BTC to Datavault’s account through off-chain transfers, rather than transactions on Bitcoin’s blockchain. Datavault later sold 491 BTC back to Scilex for about $40.5 MILLION in cash. The company plans to restate four sets of financial statements. The corrections are expected to reduce reported assets by $92.2 MILLION at year-end 2025. Management is also reassessing earlier evaluations of the company’s ability to continue operating. Shares closed at 6.7 cents on October 27, down 49.55%, per CoinDesk.

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  2. LS

    Laura Shin@laurashinPost on X ·

    Datavault AI's planned restatement is expected to cut $49.0 million from its June 30 assets, the value of the 837 BTC that Scilex agreed in June to buy from it for $50 million. A withdrawal Datavault requested from Biconomy in June still has not gone through, the company says. https://t.co/iDjy92k1Ab

    Open source
  3. UN

    UnchainedArticle ·

    Datavault AI Stock Jumps 31% Even as Its Bitcoin Sits Stuck at Biconomy Shares of Nasdaq-listed Datavault AI rebounded about 31% on Wednesday with no new filing from the company. Two days earlier, the company said in an 8-K it cannot withdraw its bitcoin from Biconomy and will restate four sets of financial statements, removing every bitcoin it had reported, including the 837 BTC that Scilex Holding signed a binding term sheet in June to buy for $50 million . DVLT closed at $0.13 on Monday, near $0.067 on Tuesday and about $0.088 on Wednesday, on roughly 383 million shares, according to Yahoo Finance data . Neither Datavault nor Scilex has filed with the SEC since. That filing, made just after Monday’s market close, says the Philadelphia company asked in June to move bitcoin from its wallet at Biconomy PTE. Ltd. to an external account and has “been unable to complete the withdrawal.” It does not say why. On Oct. 20, its audit committee concluded that investors should no longer rely on its financial statements for the third quarter of 2025, full-year 2025 and the first two quarters of 2026. Get Unchained’s crypto news in your inbox with the free Unchained Daily newsletter . How the bitcoin left the books The coins date to a September 2025 deal in which Scilex agreed to buy Datavault stock and a pre-funded warrant for $150 million , payable in bitcoin. Scilex credited 1,309.04 BTC to Datavault’s Biconomy wallet in September and November 2025, and Datavault later sold 491.431 BTC back to it for about $40.5 million, the 8-K says. Datavault now says that bitcoin “did not meet the requirements for recognition as a digital asset of the Company.” It will record the purchase instead as a receivable from Scilex, shown as a reduction of stockholders’ equity. The change is expected to cut total assets by $92.2 million at Dec. 31, 2025, and by $49.0 million at June 30, 2026. Those match the crypto-asset values in Datavault’s own quarterly report filed Aug. 19, which counted 1,054 BTC at the end of 2025 and 837 BTC at the end of June. Management is reassessing its going concern evaluation because “the collection of amounts owed by Scilex is uncertain,” the 8-K says. The company has not set a date for the restated filings. A term sheet with no signed deal On June 24, Scilex signed a binding term sheet to buy those 837 BTC, described as held in Datavault’s Biconomy wallet, for $30 million up front plus $20 million in quarterly payments running through 2028. Scilex’s 10-Q , filed Aug. 14, and Datavault’s 10-Q five days later both said no definitive agreement had been entered into. No later filing from either company reports a signing, a closing or a termination, and the Oct. 26 8-K does not mention the term sheet. Scilex’s own bitcoin also came from Biconomy: its 10-Q says it sold Semnur Pharmaceuticals shares to Biconomy in September 2025 for $200 million in bitcoin and used $150 million of it to buy the Datavault stake. The 8-K lists among its risks the outcome of efforts “to collect amounts from Scilex or obtain the cooperation of Biconomy.” Biconomy has made no public statement, and CoinDesk reported that the company had not answered its questions. Related Listen: Why Lyn Alden Says Cash Flow Beats a Pure Bitcoin Treasury The post Datavault AI Stock Jumps 31% Even as Its Bitcoin Sits Stuck at Biconomy appeared first on Unchained .

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