Nasdaq-listed Datavault AI ($DVLT) saw its shares crash nearly 50% on Tuesday after a $150 million Bitcoin (BTC-USD) deal turned into a major accounting crisis. The blockchain- and AI-focused company revealed that millions of dollars in Bitcoin remain stuck on a crypto exchange and warned that four of its past financial reports can no longer be trusted.
During Tuesday’s sell-off, roughly 244 million shares changed hands. This left DVLT stock about 88% below the price a key investor agreed to pay last year.
Following the drop, DVLT stock ticked back up 22.39% to trade at $0.08. Even with Wednesday’s bounce, DVLT stock remains down 38.27% over the past five trading days.
Scilex Uses Internal Account Credits Instead of Real Crypto Transfers
The trouble started in September 2025 when painkiller maker Scilex Holding ($SCLX) agreed to buy $150 million worth of Datavault shares and warrants using Bitcoin. Two days before that deal, Scilex had arranged to swap $200 million in shares of its Semnur Pharmaceuticals unit for Bitcoin and hired crypto exchange Biconomy to handle the plans.
“Biotech is a market we know well,” Scilex Chief Executive Officer Henry Ji said at the time while promising to help Datavault grow.
However, the Bitcoin never actually moved on the blockchain. Instead, Scilex added 1,309 BTC to Datavault’s Biconomy account using internal exchange records. Datavault later sold 491 BTC back to Scilex for $40.5 million in cash. The remaining 818 BTC have been locked up and out of reach since Datavault tried to withdraw the funds in June.
Datavault AI Is Facing a $92.2 Million Asset Cut
In an October 26 filing with the Securities and Exchange Commission, Datavault stated that those Bitcoin balances should never have been listed as company assets. Instead, the firm said the tokens should have been counted as money owed by Scilex. This change could slash Datavault’s previously reported assets by up to $92.2 million.
VanEck digital assets head Matthew Sigel called the filing “One of the ugliest 8-Ks you’ll ever see.”
Datavault now has to fix four past financial statements, covering the third quarter of 2025, full-year 2025, and the first two quarters of 2026. The company is also checking whether it has enough cash left to stay in business. While the review is still in its early stages and the filing gives no reason for the frozen withdrawal, Datavault still holds a legal claim against Scilex.
Is Datavault AI Stock a Good Buy?
Currently, Wall Street has a Moderate Buy consensus rating on Datavault AI’s stock (DVLT) based on one Buy and one Hold rating. The average 12-month DVLT stock price target of $2 indicates about 2,292% upside potential. (See DVLT stock forecast)
