Datavault shares fall ~50% as BTC stays stuck on Biconomy

Datavault AI (Nasdaq: DVLT) said in an October 26 Form 8-K that it has been unable to withdraw bitcoin from the Biconomy exchange since June 2026, and that four sets of its financial statements can no longer be relied on. On October 27 the shares fell almost 50%; Casa co-founder Jameson Lopp put the 24-hour drop at 49.55%.

Details

The bitcoin comes from a deal with Scilex, which in September 2025 agreed to buy Datavault shares and warrants for $150 million in BTC. Datavault had booked the coins as a digital asset, but the 8-K (Item 4.02, non-reliance on previously issued financials) says they did not meet the criteria for recognition as a digital asset. Between September 2025 and January 2026 Datavault sold 491.431 BTC back to Scilex for about $40.5 million (8-K summary on Stock Titan).

In June 2026 Datavault requested a withdrawal from its Biconomy wallet and, per the filing, has still not completed it. Statements to be restated cover September 30, 2025 (assets lower by $8.1 million), December 31, 2025 ($92.2 million), March 31, 2026 ($57.1 million) and June 30, 2026 ($49.0 million). Management is also reassessing going-concern disclosures because collection from Scilex is uncertain. Crypto Briefing reports roughly 817.6 BTC remain stuck; we have not verified that figure in the filing itself.

What it means for the market

The case is a reminder of custody risk: a listed bitcoin-treasury company found its coins sitting as a claim on a single centralized exchange rather than under its own control. It is not a market-moving event for BTC itself, but investors in bitcoin-treasury stocks have reason to look closely at where and how those assets are held.

For the current bitcoin price see the daily brief and the Bitcoin page. This is not investment advice.