Datavault AI shares drop 50% after failed Bitcoin withdrawal

Datavault AI shares fell 49.55% to $0.067 on October 27 after an SEC filing revealed the company has been unable to complete a June request to withdraw Bitcoin from Biconomy. The Nasdaq-listed firm disclosed in a Form 8-K filed on October 26 that it requested a withdrawal to an external account in June but has been unable to complete the transaction. The filing does not explain what is holding the process up.

The company concluded the Bitcoin never qualified as a digital asset and will reclassify the deal as a subscription receivable. Datavault will restate four financial reports, cutting reported assets by up to $92.2 million. Management is reassessing its going-concern status because it had counted the Bitcoin as a source of liquidity. The company expects to reverse previously recorded crypto gains and losses in the restatements.

Datavault has not said when it will file the restated statements and warned that delays could extend to its quarterly report for the period ended September 30, 2026. The stock bounced to near $0.085 on Wednesday following the initial disclosure.