Why did Datavault AI shares fall nearly 50%?

A filing disclosed that the company has been unable to withdraw bitcoin from Biconomy since June and will restate its financials. CoinDesk reports the stock closed at $0.067 on Tuesday, down 49.55%, on roughly 244 million shares traded.

How large is the expected restatement?

The 8-K says the company expects to reduce total assets by $8.1 million, $92.2 million, $57.1 million and $49.0 million. These correspond to September 30 and December 31, 2025, and March 31 and June 30, 2026. The timing of the restated filings is undetermined.

Is the bitcoin confirmed lost?

No. The filing says only that the withdrawal has not been completed as of the filing date. CoinDesk says Biconomy had not responded to its inquiries, so the status of the underlying coin is unconfirmed.

Datavault AI Can't Withdraw Its Bitcoin, Will Restate

Its 8-K says a June withdrawal from Biconomy is still incomplete and four periods of assets will be cut. Shares fell 49.55%.

Datavault AI says it has been unable to withdraw bitcoin from its Biconomy wallet since June 2026 and will restate financials for four periods, cutting reported total assets by as much as $92.2 million. Shares closed down 49.55% at $0.067. Whether the coin exists in recoverable form is unconfirmed.

The Ledger Desk October 28, 2026 Updated October 28, 2026 · 3 min read

Datavault AI's Form 8-K says it requested a bitcoin withdrawal from its Biconomy wallet in June 2026 and has not been able to complete it.
The company intends to restate four periods, with expected total-asset reductions of $8.1 million, $92.2 million, $57.1 million and $49.0 million, and has not set a timing for the filings.
CoinDesk reports the stock closed at $0.067 on Tuesday, down 49.55%, on roughly 244 million shares traded.
CoinDesk reports the bitcoin was credited through off-chain transfers, so balances moved inside the exchange rather than on the Bitcoin blockchain.
Whether the bitcoin can be recovered is not established in either source, and Biconomy had not responded to CoinDesk.

Datavault AI has told the market that bitcoin it counted as an asset has been stuck at an exchange since June 2026. According to its Form 8-K, the company requested a withdrawal from its Biconomy wallet that month and has not been able to complete it. It also intends to restate prior financial statements. CoinDesk reports the stock closed Tuesday at $0.067, down 49.55%. The filing does not say the bitcoin is lost, but it does not say it is recoverable either.

What the filing says about the withdrawal

The 8-K states that Scilex credited 1,309.04 bitcoin to Datavault AI's digital wallet at Biconomy, net of 19.39 bitcoin for cash advances Scilex made to the company. It states that in June 2026 the company requested a withdrawal and, as of the filing date, has been unable to complete it. Between September 26, 2025 and January 30, 2026, the company sold 491.431 bitcoin back to Scilex for approximately $40.5 million in cash, according to the filing.

Why an off-chain credit differs from custody

CoinDesk reports that Scilex credited the bitcoin through off-chain transfers, meaning balances changed inside the exchange rather than on the Bitcoin blockchain. An off-chain credit is an entry in the exchange's own ledger, and its value depends on the exchange honoring withdrawals. That makes it a claim on the platform. The filing does not describe the mechanics of the failed withdrawal, so the reason it has not completed is not established here.

The restatement covers four reporting dates

The 8-K says the company intends to restate the affected statements and has not yet determined the timing. It expects to reduce total assets by $8.1 million at September 30, 2025, $92.2 million at December 31, 2025, $57.1 million at March 31, 2026 and $49.0 million at June 30, 2026. The affected filings are the Q3 2025 10-Q, the FY2025 10-K, and the Q1 and Q2 2026 10-Qs.

The accounting change CoinDesk describes

CoinDesk reports that Datavault AI now says the bitcoin credited through Scilex's investment should have been recorded as an amount Scilex owed for the shares, which would reduce shareholders' equity rather than crypto assets. CoinDesk also reports that the company had treated these balances as funds to sustain operations and must reassess that. This account is CoinDesk's reading, and the full accounting treatment will only be clear in the restated filings.

What remains unconfirmed

CoinDesk says it contacted Biconomy about the withdrawal request and the bitcoin backing Datavault AI's account, and that Biconomy had not responded as of Wednesday in Asia. CoinDesk also cites a Scilex report describing a $200 million share sale in its subsidiary Semnur to Biconomy for bitcoin. We have not independently reviewed that report. The open questions are the exchange's position, the restatement timetable, and whether the withdrawal completes.

Why did Datavault AI shares fall nearly 50%?: A filing disclosed that the company has been unable to withdraw bitcoin from Biconomy since June and will restate its financials. CoinDesk reports the stock closed at $0.067 on Tuesday, down 49.55%, on roughly 244 million shares traded.
How large is the expected restatement?: The 8-K says the company expects to reduce total assets by $8.1 million, $92.2 million, $57.1 million and $49.0 million. These correspond to September 30 and December 31, 2025, and March 31 and June 30, 2026. The timing of the restated filings is undetermined.
Is the bitcoin confirmed lost?: No. The filing says only that the withdrawal has not been completed as of the filing date. CoinDesk says Biconomy had not responded to its inquiries, so the status of the underlying coin is unconfirmed.

Bitcoin treasury Datavault AI plunges 50% after firm says it can't access its BTC — CoinDesk
Datavault AI Inc. Form 8-K (October 2026) — US Securities and Exchange Commission (EDGAR)

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