Nasdaq-listed Datavault AI’s 8-K discloses inability to withdraw BTC from Biconomy since June 2026; shares plunge
Nasdaq-listed Datavault AI (ticker DVLT) disclosed in an 8-K filing submitted on October 26 that the company applied in June 2026 to withdraw the Bitcoin stored in its digital wallet at the Biconomy exchange to an external account, and as of the filing date it had still not been able to complete the withdrawal. After the disclosure, the company’s share price fell sharply.
The Bitcoin came from a securities purchase agreement reached with Scilex Holding on September 25, 2025. Under the agreement, Scilex agreed to pay $150 million in Bitcoin to purchase Datavault common stock and pre-funded warrants. Scilex credited Datavault’s wallet at Biconomy with 1,309.04 BTC through an off-chain transfer. The company later resold part of that Bitcoin back to Scilex and received about $40.5 million in cash.
After review, the company determined that the Bitcoin related to the transaction did not qualify to be recognized as the company’s digital assets and should be accounted for as subscription receivables, with stockholders’ equity reduced accordingly. The company said that its financial statements for multiple prior periods should no longer be relied upon, and it expects to restate its financial statements from the third quarter of 2025 through the second quarter of 2026.
Original source:
Title: Form 8-K Current Report Publisher: Datavault AI Inc. Publication date: 2026-10-26 URL: https://ir.datavaultsite.com/sec-filings/all-sec-filings/content/0001104659-26-118772/tm2628100d1_8k.htm Nature of source: company SEC 8-K filing Verification status: full file read in this update, verification date 2026-10-28 Supporting content: confirms that the June 2026 application to withdraw Bitcoin from the Biconomy wallet was not completed, the September 2025 $150 million BTC equity transaction with Scilex, the off-chain transfer crediting 1,309.04 BTC, the partial resale, the accounting treatment adjustment, and the statement that the financial statements are not reliable
ABAB AI Insight
The core of the event is that Bitcoin credited through an off-chain transfer could not actually be withdrawn, leading the company to reassess its asset recognition. The 8-K explicitly states that the withdrawal request, which has been pending since June, was not completed, and reclassifies part of the amount originally recorded as digital assets as subscription receivables owed by Scilex, reflecting the separation between control of the exchange account and assets on the company’s books.
The company also announced that financial statements for multiple periods are no longer reliable, and it expects total assets to be significantly reduced. The key indicator to watch is the actual adjustment amount in the subsequent restated reports, as well as whether Biconomy completes the withdrawal or Scilex settles the receivable in another way.
ABAB News · Cognitive Law
Bitcoin credited to an exchange wallet through an off-chain transfer, when it cannot be withdrawn, is reclassified as receivables, showing the difference between control of a custodial account and the conditions for asset recognition.
When an equity transaction paid in cryptocurrency runs into withdrawal obstacles, the company must retroactively adjust multiple reporting periods in its asset recognition and liquidity assessments.