Datavault AI shares crash after company says it can’t withdraw its Bitcoin from Biconomy

Datavault AI just learned an expensive lesson. Holding Bitcoin on paper and holding Bitcoin you can actually move are two very different things.

The Nasdaq-listed company (DVLT) told regulators that its request to pull Bitcoin off Biconomy has been pending for four months. It also said several quarters of its financial statements can no longer be relied upon. Shares fell by approximately 37-48% on the news, trading around $0.07.

What Datavault disclosed

The disclosure came in an SEC Form 8-K filed on October 26, 2026. Companies use the 8-K to report major events that shareholders need to know about between regular filings.

This one was about as major as it gets. Datavault said four sets of financials should no longer be trusted: Q3 2025, full-year 2025, Q1 2026, and Q2 2026.

The problem traces back to a September 2025 equity purchase agreement with Scilex Holding Co. (NASDAQ: SCLX). Under the $150 million deal, 1,309.04 BTC was credited to Datavault’s account that month.

Datavault then sold 491.431 BTC back to Scilex for about $40.5 million in cash. The remaining Bitcoin is the part sitting on Biconomy, with a withdrawal request that has gone unanswered for four months as of the filing date.

Datavault later concluded the Bitcoin did not qualify as a digital asset on its books. Instead, the company will classify it as a subscription receivable. A subscription receivable is money an investor still owes for shares it agreed to buy. It sits on the books as a claim, not as something the company fully controls.

The size of the restatement

Reclassifying the Bitcoin is expected to shrink Datavault’s total assets across every affected period. The company’s estimated reductions look like this:

September 30, 2025: $8.1 million lower.

December 31, 2025: $92.2 million lower.

March 31, 2026: $57.1 million lower.

June 30, 2026: $49.0 million lower.

The market reacted on October 27, 2026, the trading day after the filing. Reported declines ranged from 37% to 48%, with the stock hitting a low of approximately $0.07.

Background: an AI company with a Bitcoin problem

Datavault AI positions itself around data and tokenization technology. It also owns the WiSA wireless audio portfolio.

In the same period as the restatement news, the company announced 13 US patent milestones for that WiSA wireless audio portfolio.

The accounting question at the center of the restatement is control. If a company cannot move an asset, it gets harder to argue that asset belongs on the balance sheet the way a liquid holding would.

What this means

For DVLT shareholders, the immediate concern is the restatement itself. Until revised financials are filed, investors are working without reliable numbers for about a year of the company’s history.

The unresolved withdrawal adds another layer of uncertainty. Datavault has not disclosed when or whether the remaining Bitcoin will become accessible.

Because the Bitcoin came through an equity purchase agreement with another listed company, the reclassification could draw attention to how both firms accounted for the deal.