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Scilex Boosts Datavault AI with Strategic $150 Million Bitcoin Investment

Bryce TuoheyAvatar
Written by Bryce Tuohey Reviewed by Tim Sykes Fact-checked by Matt Monaco
Updated 9/28/2025, 9:14 am ET | 6 min
Scilex Boosts Datavault AI with Strategic $150 Million Bitcoin Investment Thumbnail

In this article

  • DVLT-1.52%
    DVLT - NASDAQDatavault AI Inc.
    $3.00-0.05 (-1.52%)
    Volume:  82.71M
    Float:  90.17M
    $2.91Day Low/High$3.79

Datavault AI Inc. stock surged 35.36% as positive sentiment from AI innovation advancements boosts investor confidence.

Technology industry expert:

Analyst sentiment – negative

  1. Market Position & Fundamentals: DVLT currently exhibits a highly precarious market position characterized by overwhelmingly negative profitability metrics. With an EBIT margin of -919.3 and a profit margin tottering at -1545.85, the company is grappling with severe operational inefficiencies. Despite garnering revenue of $2.674 million, its gross margin stands at a modest 12.4%, underscoring constrained scalability. Declining revenue growth over 3 years further signals a worrying trend. The financial footing is frail, highlighted by a negative leverage profile and paltry liquidity ratios including a current ratio of merely 0.1. In essence, DVLT is struggling to maintain stable operational and financial momentum amidst a challenging landscape.

  2. Technical Analysis & Trading Strategy: Recent price patterns for DVLT indicate significant volatility. On 25th and 26th September, the stock showcased a robust bullish trend with a sharp rise from $1.01 to $1.13, suggesting buoyant investor sentiment. The upward movement is supported by heightened trading volumes, hinting at sustained interest. However, prior weeks depicted erratic fluctuations, representing a potential speculative trading environment. Given this backdrop, traders should consider a tactical breakout strategy with a focus on new resistance around $1.13. Volume confirmations above this level could prompt further upward potential. Conversely, investors should remain wary of support around $0.92 that, if breached, could invite bearish momentum.

  3. Catalysts & Outlook: Recent promising developments include Scilex’s $150 million Bitcoin investment into DVLT, notably shoring up the firm’s capital base. This cash influx is poised to expedite DVLT’s expansion into AI and blockchain applications across biotech, energy, and entertainment, potentially transforming market positioning. However, caution is warranted given the inherent volatility in crypto transactions and shareholder approval dependencies. Against broader Technology and Software & IT Services benchmarks, DVLT remains a high-risk proposition. Technical charts indicate firm resistance at $1.20 with possible support levels at $0.90. Despite the infusion of business capital, the path to sustainable profitability remains fraught with uncertainty.

Candlestick Chart

Weekly Update Sep 22 – Sep 26, 2025: On Sunday, September 28, 2025 Datavault AI Inc. stock [NASDAQ: DVLT] is trending up by 35.36%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Quick Financial Overview

Datavault AI has recently secured a considerable investment amounting to $150 million from Scilex Holding Company, marking a decisive step towards augmenting its technological infrastructure and market presence. This strategic infusion of capital is facilitated through Bitcoin, highlighting the company’s effort to leverage cryptocurrency for flexibility and innovation in financial transactions.

Despite this influx, the financial metrics paint a challenging picture. Datavault’s financial ratios reflect struggling profitability margins, evident from its negative EBIT margin of -919.3% and EBITA margin at -800.4%. The company’s return on assets and equity remain starkly negative, reflecting wider inefficiencies that must be addressed to capitalize on new investments.

Intraday movements in DVLT’s stock show increased volatility, rising from an open of $1.145 to a high of $1.38, indicative of market reaction to the Scilex-backed investment news. The closing at $1.09 suggests a market waiting on further developments tied to the full execution of this strategic initiative. Such volatility is a key consideration for traders focusing on penny stocks, emphasizing the emphasis on trading over investment.

Key ratios also reveal other financial challenges, such as a debt to equity ratio of 0.1 and poor coverage for current liabilities, with the current ratio sitting at merely 0.5. The influx of $150 million is a crucial stepping stone for tackling these financial hurdles and obtaining a competitive edge in targeted sectors.

More Breaking News

Conclusion

The commitment by Scilex Holding Company to invest $150 million into Datavault AI represents a momentous opportunity for both capital expansion and reinforcing technological prowess within AI sectors. However, the path ahead is lined with fiscal hurdles requiring diligent execution of strategic plans. Earning the trust of traders and achieving shareholder approval are essential steps to ensure the success of this capital deployment.

The initial market reaction suggests cautious optimism, with increased stock volatility reflecting heightened trader interest and anticipation. As part of prudent risk management, stakeholders and traders must stay alert to further developments, primarily focusing on management’s ability to translate this influx into sustainable growth, while optimizing operational efficiency. As millionaire penny stock trader and teacher Tim Sykes says, “Be patient, don’t force trades, and let the perfect setups come to you.” This principle of patience is crucial as traders monitor progressing strategies to maximize returns.

Ultimately, the news of this strategic investment signals a critical juncture for Datavault AI, underscoring both the potential for significant market gain and the inherent challenges in pioneering the company forward. A close watch on unfolding operational strategies and financial performance will be essential to navigate this pivotal phase effectively.

This is stock news, not investment advice. Timothy Sykes News delivers real-time stock market news focused on key catalysts driving short-term price movements. Our content is tailored for active traders and investors seeking to capitalize on rapid price fluctuations, particularly in volatile sectors like penny stocks. Readers come to us for detailed coverage on earnings reports, mergers, FDA approvals, new contracts, and unusual trading volumes that can trigger significant short-term price action. Some users utilize our news to explain sudden stock movements, while others rely on it for diligent research into potential investment opportunities.

Dive deeper into the world of trading with Timothy Sykes, renowned for his expertise in penny stocks. Explore his top picks and discover the strategies that have propelled him to success with these articles:

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Bryce Tuohey

Mentor and Trainer at StocksToTrade.com, Lead Mentor at Small Cap Rockets and To The Moon Report
Bryce’s first pattern was buying into strength in breakouts. But he noticed when they didn’t work, he took bigger losses. When the OTC market got hot, Bryce learned to dip buy the inevitable panics. He adapted his breakout strategy and now buys consolidation and trend breaks. His goal is to have better risk/reward and get an entry before multi-day listed breakouts.
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In this article (YTD Performance)

  • DVLT+60%
    DVLT - NASDAQDatavault AI Inc.
    $3.00-0.05 (-1.52%)
    Volume:  82.71M
    Float:  90.17M
    $2.91Day Low/High$3.79

* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”

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