Datavault AI Stock Crashes 50% After Bitcoin Withdrawal Freeze
Oct 28, 2026
Datavault AI shares plunged 50% after the company said it couldn't withdraw 817.6 BTC tied to its $150 million Scilex investment deal.
Datavault AI just had a rough day on the Nasdaq. Shares of the company, ticker DVLT, dropped roughly 50% after it told investors it couldn't withdraw a chunk of Bitcoin tied to a major deal with Scilex Holding.
Back when the partnership was announced, Scilex agreed to pump $150 million into Datavault AI, with the investment payable in Bitcoin. The first tranche went through fine, but things got messy when Datavault said it was unable to pull 817.6 BTC off the exchange where the coins were held, a platform called Biconomy.
Why It Matters
When a company's balance sheet depends on crypto sitting on a third-party exchange, withdrawal problems are never a good look. Investors clearly agreed, sending the stock tumbling the moment the news broke.
It's a reminder that even "strategic Bitcoin investments" carry real counterparty risk if the coins aren't in a wallet you actually control. Datavault hasn't said yet how or when the issue gets resolved.