Datavault Expects $92.2 Million Asset Reduction After Bitcoin Accounting Review
Key Facts
Datavault AI expects a restatement of its financial statements to reduce total assets by $8.1 million as of September 30, 2025, and by $92.2 million as of December 31, 2025, according to a filing with the U.S. Securities and Exchange Commission. The adjustments also include asset reductions of $57.1 million as of March 31, 2026, and $49.0 million as of June 30, 2026. The company said Bitcoin tied to the Scilex deal does not qualify for recognition as a digital asset owned by Datavault. Instead, it said the appropriate accounting treatment is to record a subscription receivable arising from the share issuance, shown as a reduction in shareholders' equity. The review puts the eligibility of the Bitcoin balances for recognition at the center of the changes to the financial statements.
The relationship dates to an agreement Scilex signed on September 25, 2025, to buy 15,000,000 common shares and a pre-funded warrant to purchase an additional 263,914,094 shares, for $150 million payable in Bitcoin. The agreement set the Bitcoin price at $112,915.52, equivalent to about 1,328.43 Bitcoin. Datavault said Scilex deposited 1,309.04 Bitcoin into its Biconomy wallet, after deducting 19.39 Bitcoin tied to cash advances. It said the deposit was made through an off-chain transfer. Between September 26, 2025, and January 30, 2026, Datavault sold Scilex 491.431 Bitcoin for about $40.5 million in cash.
In June 2026, Datavault requested a withdrawal of Bitcoin from its Biconomy wallet to an external account, but said it had been unable to complete the withdrawal as of the date of its filing. The company said its earlier going-concern assessment counted the Bitcoin balances as a source of liquidity. It is now reassessing its disclosures because the Bitcoin will not appear as an asset in the financial statements and collection of amounts due from Scilex is uncertain. The company said the Bitcoin balances "will no longer be presented as an asset," and that uncertainty over collection prompted management to reassess going-concern assumptions. This represents a change in the presentation of assets and in the liquidity assumptions management previously used.
The news also affected Scilex shares, which closed at $2.05 on October 27, compared with $2.33 in the previous session. Datavault shares closed at $0.067 on October 27, after $0.1328 on October 26, recording a daily decline of 49.55%, according to historical price data. The stock then rose to $0.084 on October 28, a 25.37% gain for the session, according to Investing.com data. The figures reflect a sharp decline in the October 27 session followed by a rebound the next day, not a jump in the October 27 session as stated in the initial version. The company's filing did not identify the reason for the inability to withdraw from Biconomy.
Datavault did not specify a date for filing the restated financial statements. It said its review of the statements and assessment of internal controls are still underway, and that the review could uncover additional errors or cause delays. The company added that management is reassessing its disclosures in light of the Bitcoin no longer being presented as an asset and uncertainty over collecting receivables from Scilex. It said in its filing: "The company has not yet determined the timing of those filings," adding that its review of the financial statements and internal controls is continuing. The publication date for the revised statements therefore remains unknown as the company completes its review.