Overview
- Datavault disclosed in an Oct. 26 SEC Form 8-K that it has been unable to withdraw bitcoin from the Biconomy exchange since June and will reclassify the credited balance as a subscription receivable.
- The firm said four reporting periods can no longer be relied upon and will be restated: Q3 2025, full-year 2025, Q1 2026 and Q2 2026.
- Datavault estimated the reclassification will reduce reported assets by about $92.2 million at Dec. 31, 2025 and about $49.0 million at June 30, 2026.
- Investors reacted sharply: DVLT shares plunged roughly half, closing near $0.067 on heavy volume after the filing and leaving holders without audited numbers for the affected year.
- The issue stems from off‑exchange, on‑platform bitcoin credits tied to a Sept. 2025 equity deal with Scilex, a setup that meant the tokens could not be moved externally and raises broader questions about how companies record and disclose crypto received through exchanges.