Datavault AI Faces Crypto Crisis: Bitcoin Withdrawal Halted

Datavault AI's stock plummeted by more than 50% on Tuesday, reaching $0.06 per share. This sharp decline followed the company's revelation that it has been unable to withdraw Bitcoin from the Biconomy crypto exchange since June. Compounding the crisis, Datavault AI announced that four of its financial statements can no longer be relied upon.

The company filed a Form 8-K on October 26, 2026, detailing its unsuccessful attempts to withdraw Bitcoin since June. The exact reasons for this inability remain unclear in the filing. This situation jeopardizes the company's liquidity and operational continuity, prompting management to reassess its status as a going concern.

The Bitcoin in question originated from a September 25, 2025, agreement where Scilex Holding was to pay $150 million in Bitcoin for Datavault shares. While some Bitcoin was credited to Datavault's Biconomy account, subsequent sales and transfers have complicated the asset's status.

Datavault AI has concluded that the Bitcoin never legally qualified as its digital asset. Consequently, the company will reclassify the transaction as a subscription receivable. This reclassification, along with the acknowledgment of unreliable financial statements, is expected to significantly reduce reported total assets across several reporting periods. The company has not provided a timeline for filing the restated statements.