Shares of Datavault AI Inc. fell nearly 50% on Tuesday after the company filed a regulatory disclosure stating it has been unable to withdraw bitcoin held at the Biconomy exchange since June and will restate more than a year of financial results. The stock closed at $0.067, down 49.55% from the prior close of $0.1328, on volume of roughly 244 million shares.

Details of the Scilex Transaction

The issue originates from a September 2025 securities purchase agreement with Scilex Holding Company. Under the deal, Scilex agreed to acquire 15 million shares of Datavault AI common stock plus a pre-funded warrant covering more than 263.9 million shares for $150 million, payable in bitcoin. The transaction valued the payment at approximately 1,328.43 bitcoin based on a spot rate of $112,915.52 per bitcoin.

Scilex credited 1,309.04 bitcoin to a Datavault digital wallet maintained by Biconomy through off-chain transfers. Between September 2025 and January 2026, Datavault sold 491.4 of those bitcoin back to Scilex for about $40.5 million in cash. The remaining balance remained in the Biconomy wallet.

In June 2026, Datavault requested a withdrawal of the bitcoin to an external account. As of the Oct. 26 filing, the withdrawal had not been completed. The company provided no further details on the reason for the delay.

Accounting Reclassification and Restatement

Following a review, Datavault determined the bitcoin associated with the Scilex transaction did not meet the requirements for recognition as a company digital asset. Instead, the amounts should have been recorded as a subscription receivable arising from the equity issuance, presented as a reduction of stockholders’ equity.

The company’s audit committee and management concluded on Oct. 20 that investors should no longer rely on previously issued financial statements covering the third quarter and first nine months of 2025, full-year 2025, the first quarter of 2026, and the second quarter and first half of 2026.

Datavault stated it intends to restate the affected statements but has not yet set a filing date. The identification and evaluation of the errors remain preliminary and may change.

Going-Concern Implications

Management is reassessing its going-concern analysis. The company had previously treated the bitcoin balances as a source of liquidity available to support operations. With the bitcoin no longer presented as an asset and collection from Scilex remaining uncertain, that assumption must be revisited. The effect of the restatement on the going-concern evaluation has not yet been determined.

Biconomy was also involved earlier in the funding chain. Scilex’s financial reports indicate it sold shares in a subsidiary to Biconomy for bitcoin and then used $150 million of that bitcoin to purchase the Datavault securities.

Additional Patent Disclosure

In the same period, Datavault reported progress on its WiSA wireless-audio intellectual property portfolio. The company listed three issued U.S. patents and 10 applications that received Notices of Allowance. The patents address audio-source localization, concealment of discontinuities in audio blocks, and multi-speaker speech processing.

The portfolio covers wireless-audio transmission and synchronization, speaker identification and localization, error concealment, interoperability, and device pairing. Potential applications include televisions, soundbars, home theater systems, wireless speakers, smart-home devices, gaming, and professional audio. No new licensing agreements or associated revenue were announced.

The combined disclosures on the inaccessible bitcoin position and the required accounting restatements drove the sharp decline in Datavault AI shares.