Datavault AI Bitcoin Withdrawal Stalled as Shares Plunge

| cryptopotato.com
Datavault AI said it has been unable to withdraw Bitcoin from the Biconomy exchange since requesting a transfer in June, prompting accounting revisions and renewed concern over the company’s liquidity. In an October 26 SEC filing, the Nasdaq-listed firm said four previously filed financial reports should no longer be relied upon because Bitcoin received through a $150 million Scilex equity deal did not qualify as an asset Datavault owned. The company plans to restate the reports, reduce reported assets by $8.1 million to $92.2 million across affected dates, and reverse previously recorded crypto gains and losses. Datavault said it received 1,309.04 BTC after 19.39 BTC was deducted for prior cash advances. It later returned 491.431 BTC to Scilex for about $40.5 million, while the remaining Bitcoin stayed in a Biconomy off-chain account. A proposed $50 million Scilex purchase of the remaining 837 BTC is subject to a definitive agreement. Datavault said collecting outstanding payments from Scilex and accessing the Bitcoin are uncertain, and management is reassessing whether the company can continue as a going concern. It has not provided a timetable for filing the restated statements and warned of possible further reporting delays. Datavault AI shares fell about 50% around the disclosure, closing at $0.067 on October 28 after reaching an intraday low of $0.060. The episode highlights company-specific custody, accounting and liquidity risks for Bitcoin treasury firms; it does not, on its own, signal a broader change in Bitcoin market conditions.
Neutral
The disclosure is directly negative for Datavault AI because it raises questions about access to Bitcoin, asset reporting and the company’s ability to meet its obligations. However, the requested market view concerns Bitcoin itself: the event involves a single company’s custody and accounting practices and does not establish that Bitcoin has become inaccessible across the market or that broader demand has weakened. Short-term traders may react to the headline with caution, but any Bitcoin price effect is likely to be limited unless it prompts evidence of wider exchange or custody problems. Over the longer term, the episode may reinforce scrutiny of proof of reserves, custody arrangements and how companies account for crypto holdings, without changing Bitcoin’s underlying market outlook on its own.