Datavault AI Struggles to Access Bitcoin After Major Transaction

In an intriguing turn of events within the tech and cryptocurrency sectors, Datavault AI Inc. announced its inability to access approximately $65 million worth of Bitcoin, following a significant securities transaction last year. This situation stems from a September 2025 agreement with Scilex Holding Company, where Datavault traded Bitcoin for shares in the company.

Details of the Transaction

According to the agreement, Scilex was to acquire 15 million shares of Datavault common stock and a pre-funded warrant for an additional 263,914,094 shares for a total consideration of $150 million. This amount was to be paid in Bitcoin, specifically around 1,328.43 BTC.

By September 2025 and November 2025, Scilex had credited Datavault with 1,309.04 Bitcoin through off-chain transfers, despite an initial reduction of 19.39 BTC for cash advances. In the months that followed, Datavault sold 491.431 Bitcoin back to Scilex for approximately $40.5 million, leaving an outstanding balance of roughly 817.6 BTC on the digital wallet at Biconomy Pte. Ltd. As of now, this remaining amount is valued at about $65 million, given the recent Bitcoin price trends hovering near $80,000.

Withdrawal Complications

Despite multiple requests for withdrawal starting in June 2026, Datavault has reported difficulties in transferring these Bitcoin assets to an external account. The company disclosed this issue in a Form 8-K submitted to the Securities and Exchange Commission (SEC) on October 26, 2026. The filing pointed out that the inability to withdraw these funds has necessitated a reassessment of the company’s financial strategy and reporting.

Pending Agreements and Financial Reporting

In a separate development, Datavault and Scilex signed a binding term sheet on June 24, 2026, regarding the sale of 837 Bitcoin for $50 million, with structured payments extending through December 2028. However, both parties have acknowledged that a definitive agreement has yet to be established, and the status of this transaction remains unclear.

Datavault’s disclosures indicate that due to the unresolved status of the Bitcoin holdings, previous financial statements cannot be relied upon, prompting the company to record the Bitcoin as a subscription receivable instead of a digital asset.

Market Reactions and Company Background

Despite the turbulence, Datavault’s stock witnessed a recovery, regaining approximately 31% of its value in a single day, although the underlying reasons for this rebound are not publicly acknowledged. Interestingly, both Datavault and Scilex are relatively unknown entities in the cryptocurrency space, a fact noted by industry observers, including Casa’s Chief Security Officer Jameson Lopp, who remarked on the unfamiliarity of both companies, referencing the common adage, “not your keys, not your coins.”

Datavault AI describes itself on its investor relations website as an AI-centered technology-licensing business rather than a dedicated Bitcoin treasury firm, contrasting it with well-known entities such as MicroStrategy, which has built extensive Bitcoin holdings over time.

Understanding Biconomy’s Role

The exchange involved in Datavault’s Bitcoin holdings is identified as Biconomy Pte. Ltd. Although it claims to be licensed by Malaysia’s Securities Commission, it is not listed among the registered digital asset operators according to the latest regulatory updates. This raises questions about the management of Datavault’s assets and the risk exposure associated with utilizing an obscure exchange.

Future Challenges and Industry Context

As more publicly traded companies have ventured into Bitcoin holdings, Datavault’s situation highlights the complexities and potential pitfalls of such strategies. While some companies pivot away from cryptocurrency investments amidst market volatility, others continue to navigate these waters, balancing traditional business models with innovative asset management approaches.

With ongoing uncertainties regarding its Bitcoin assets and the financial implications stemming from its dealings with Scilex and Biconomy, Datavault AI’s future remains a topic of keen interest within both technology and financial circles.