Datavault AI unable to withdraw bitcoin from $150 million share sale, and more

The following article is adapted from The Block's newsletter, The Daily, which comes out on weekday afternoons.

Happy Wednesday! Bitcoin is currently trading above $81,000 after the Federal Reserve left interest rates unchanged.

In today's newsletter, Datavault AI shares plunge 50% over a bitcoin withdrawal issue, Ripple expects a $900 million annualized product revenue run rate, Robinhood Chain brings in $26 million, and more.

Meanwhile, Moody's assigns investment-grade ratings to Ripple's RLUSD stablecoin, and crypto faces a potential shift in congressional oversight after the midterms.

P.S. Don't forget to check out The Latent, our sister website covering AI. Get The Latent Daily here and all other The Block newsletters here. Also, follow The Block and The Latent on X for more updates.

Datavault AI shares plunge 50% over bitcoin withdrawal issue

Shares of Datavault AI, "an artificial intelligence platform company providing data monetization, acoustic sciences, credentialing, and digital asset management solutions," plunged nearly 50% on Tuesday after the company disclosed that it has been unable to withdraw bitcoin linked to a $150 million share sale. The shares have since recovered some of those losses.

• The company also said it would need to restate more than a year of financial statements because of an accounting error involving the transaction.
• The deal dates back to September 2025, when Scilex agreed to purchase 15 million Datavault AI shares and warrants covering more than 263.9 million shares, paying approximately 1,328 BTC.
• The bitcoin was credited to a company wallet at Biconomy through an offchain transfer. Datavault later sold some of the credited bitcoin back to Scilex for about $40.5 million in cash.
• Datavault requested a withdrawal from the wallet in June but said it had still been unable to complete the transfer as of Oct. 26. The filing did not explain why.
• The company said the bitcoin should not have been recorded as a digital asset on its balance sheet.

Ripple targets $900 million annualized product revenue run rate by year-end

Ripple expects to end 2026 with a $900 million annualized product revenue run rate as its payments, custody, stablecoin, prime brokerage and treasury businesses expand.

• Ripple said the number of customers and partners using multiple products has tripled this year. Its payments network is expected to approach $150 billion in lifetime volume by year-end.
• The company's RLUSD stablecoin has reached a market capitalization of about $2.6 billion. Ripple also received final OCC approval this week to establish a national trust bank.
• Recent institutional activity includes Aviva Investors launching a tokenized share class of its sterling liquidity fund on the XRP Ledger and Brevan Howard expanding its relationship with Ripple to include prime brokerage, clearing and financing.

Robinhood Chain generates $26 million as Q3 crypto revenue rises 20%

Robinhood reported $120 million in crypto revenue for the third quarter, up 20% from the previous quarter. Its Robinhood Chain blockchain contributed $26 million in its first quarter on mainnet.

• Excluding Robinhood Chain, crypto transaction revenue fell 6% quarter over quarter to $94 million. Total crypto revenue was also down 55% from a year earlier.
• Crypto trading volume rose 23% from the second quarter to $49.8 billion, including $20.6 billion through the Robinhood app and $29.2 billion on Bitstamp.
• Prediction markets brought in $173 million, up 11% from the previous quarter. Robinhood reported record total net revenue of $1.42 billion, though net income fell 14% to $476 million.

Bitwise raises 2036 bitcoin price target to $1.6 million

Bitwise has raised its 10-year bitcoin price forecast from $1.3 million to $1.6 million, projecting a compound annual return of 34.3%.

• The crypto asset manager cited a larger potential market for bitcoin and growing institutional adoption. Bitwise increased its estimate for the global store-of-value market in 2036 from $91 trillion to $110 trillion, and for the institutional investment market from $216 trillion to $303 trillion.
• Its base case assumes bitcoin captures 25% of the global store-of-value market and 1% of institutional investment assets by 2036. Its bear and bull cases put bitcoin at roughly $131,000 and $3.67 million, respectively.

CFTC sues Utah in growing fight over prediction market oversight

The Commodity Futures Trading Commission has sued Utah and Attorney General Derek Brown, escalating its dispute with states over who has authority to regulate prediction markets.

• The lawsuit follows Utah's legal action against Kalshi over alleged illegal gambling. The CFTC said Utah was interfering with its exclusive jurisdiction over commodity derivatives.
• Utah is the tenth state the federal regulator has sued over the issue, following similar cases involving nine other states, including New York, Arizona and Illinois. States maintain they have authority over sports betting.

In the next 24 hours

• The U.S. will release its third-quarter GDP estimate, weekly jobless claims and September PCE inflation data on Thursday.
• The European Central Bank will announce its interest rate decision Thursday, followed by a monetary policy statement and press conference.
• Falcon Finance (FF) and Collector Crypt (CARDS) are among the tokens scheduled to unlock Thursday.

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