Datavault AI cannot withdraw bitcoin from Biconomy

Datavault AI’s missing Bitcoin (BTC) is an uncollected stock subscription, not a treasury coin the company can show it controls. In a Form 8-K filed on October 26, 2026, the Philadelphia-based Nasdaq Capital Market issuer said a withdrawal from its wallet at Biconomy Pte Ltd is still unfinished, and that bitcoin from a Scilex Holding Company purchase should never have been booked as its digital asset. That September 25, 2025 purchase was priced at $150 million. The share-price drop describes a frozen stack. The correction describes a receivable the company calls uncertain to collect.

DVLT, a Delaware corporation, agreed that Scilex would buy 15,000,000 shares and a pre-funded warrant for 263,914,094 more shares, payable in bitcoin at $112,915.52, or about 1,328.43 BTC. Scilex credited 1,309.04 BTC to the Biconomy wallet on September 26 and November 25, 2025 by an off-chain transfer, 19.39 BTC under the contract amount after cash advances. By January 30, 2026 Datavault AI had sold 491.431 of those credited bitcoin back to Scilex, off-chain, for about $40.5 million. An off-chain credit is a venue-ledger entry, so the holder’s control depends on forcing a withdrawal onto the Bitcoin network.

What the company says it cannot do

In June 2026 Datavault AI asked Biconomy to send bitcoin from that wallet to an external account. The Form 8-K, signed by Chief Financial Officer Brett Moyer, says the company “has, as of the date of this Current Report on Form 8-K, been unable to complete the withdrawal,” and it gives no operational reason. The risks named beside the restatement include the custodian, collection from Scilex and Biconomy’s cooperation.

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What that means for the bitcoin it says it is owed

Datavault AI decided the Scilex bitcoin did not qualify as its digital asset. The purchase becomes a subscription receivable, deducted from stockholders’ equity under ASC 505-10-45-2 and Regulation S-X Rule 5-02.29, and the $40.5 million already received reduces what Scilex still owes. The bitcoin the company says it is owed is that claim, and the filing describes collection as uncertain. A trade receivable would stay on the asset side. This subscription comes off equity, so total assets shrink instead of the coins being relabelled as cash still due.

Restatement, the share print and custody

Expected asset cuts, which the company calls preliminary, are $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, with crypto gains and losses reversed. On October 20, 2026 the audit committee and management withdrew reliance on the reports covering those dates. Going-concern work under ASC 205-40 had counted the bitcoin as liquidity, so management is redoing that test for the year ended December 31, 2025 and the quarter ended March 31, 2026, after speaking with auditor CBIZ CPAs P.C. and former auditor BPM LLP.

Yahoo Finance showed DVLT at $0.067 at the October 27, 2026 close, 4 pm Eastern, on about 246 million shares. CoinDesk measured the drop at 49.55% to $0.067. Biconomy’s reason for the stall is absent from the filing. On June 24, 2026 Datavault AI signed a term sheet for Scilex to buy 837 BTC then described as currently held in the wallet, for $50 million, with $30 million up front and $20 million in instalments through December 31, 2028. The October filing leaves that purchase’s outcome, and the gap between 837 BTC and the earlier credit and sale, unreconciled.

Other desks already separate a displayed balance from a coin that can move. FNB share accounts added VALR crypto that cannot leave the venue, and the Liquid sidechain stayed frozen after 3,400 of 4,000 BTC had been returned. Cactus Custody’s Swiss launch and Citi’s Custody+ bitcoin service took bitcoin on without naming a key holder. Datavault AI’s Scilex bitcoin failed that test, which is why the subscription rule is the one now applied.

Datavault AI has left the restatement date open, warned that its next quarterly report can slip, and told readers to set the affected statements aside until new figures are filed. A finished withdrawal, or cash from Scilex, would put liquidity back where management could count it, as bitcoin outside Biconomy or as dollars against the receivable. If both stay unresolved, the smaller asset totals and the contra-equity claim remain, and the going-concern review may drop a source the prior books had used. The same 8-K names Nasdaq continued-listing compliance, Scilex’s credit and possible litigation or regulatory questions on top of that accounting.

This article is informational analysis only and is not financial, investment, or trading advice. Cryptocurrencies are highly volatile and can lose substantial value rapidly. Past performance and historical patterns do not guarantee future results. Do your own research and consult a regulated financial adviser before making any investment decision.