Datavault AI Shares Plunge Nearly 50% After $150M Bitcoin Deal Controversy

Datavault AI, whose shares list on the Nasdaq, lost nearly half their value on Tuesday after a $150 million Bitcoin arrangement turned into an accounting controversy.

The company said that millions of dollars in Bitcoin were trapped at a crypto exchange and that four of its financial reports can no longer be treated as reliable.

Trading was heavy, with roughly 244 million Datavault shares changing hands. The share price is now about 88% below the mark a major investor agreed to pay last year.

What Went Wrong With the $150 Million Bitcoin Deal

The trouble started in September 2025, when painkiller company Scilex Holding agreed to buy $150 million of Datavault shares and warrants using Bitcoin.

Two days before that, Scilex had arranged to turn $200 million of shares in its Semnur Pharmaceuticals unit into Bitcoin. Biconomy, a crypto exchange, was hired to support the effort.

“Biotech is a market we know well,” Henry Ji, CEO of Scilex, said then, vowing to steer Datavault as it grows.

The Bitcoin never actually moved on the blockchain, however. Instead, the transfer existed only as internal exchange records, with 1,309 BTC credited to Datavault’s Biconomy account.

In a later transaction, Datavault sold 491 BTC back to Scilex and received $40.5 million. The other 818 BTC have stayed inaccessible since a withdrawal request was submitted in June.

A $92 Million Accounting Shock for Investors

An October 26 SEC filing says Datavault now believes those Bitcoin balances should never have been booked as company assets.

They should instead have been treated as money owing from Scilex, a shift that could reduce previously reported assets by $92.2 million.

Corrections are needed for four financial statements. The company is also reconsidering whether it can continue operating with the resources it has.

VanEck’s Matthew Sigel commented: “One of the ugliest 8-Ks you’ll ever see.”

These conclusions are still preliminary, and Datavault retains a claim against Scilex. Why the withdrawal stalled is not explained in the filing.