Investing.com — Datavault AI (NASDAQ:DVLT) stock fell 9.5% after Wolfpack Research announced it had taken a short position in the company, citing concerns about misleading claims and questionable leadership.
The short-seller criticized Datavault for what it described as “empty claims” regarding AI technology, quantum computing, and Web 3.0 capabilities. Wolfpack’s report particularly focused on CEO Nathaniel Bradley’s background, noting he previously settled charges with the SEC, and his connections to Edward Withrow III, a convicted felon.
Wolfpack Research also raised concerns about potential dilution, pointing to a $150 million investment agreement with Scilex Holding Company (NASDAQ:SCLX) that could nearly double Datavault’s outstanding shares if completed. The short-seller questioned the legitimacy of Biconomy PTE.LTD, the entity supposedly providing the funds.
The report challenged several of Datavault’s claims, including the company’s purported “Center for AI and Quantum Computing Excellence.” Wolfpack investigators visited the location and reported finding only a small 2,800 square foot office with minimal staff, contradicting company statements about “22,000 sq ft floor plates” and “onsite data centers.”
Additionally, Wolfpack criticized Datavault’s blockchain platform as essentially inactive, noting that the NFTs available for sale included unusual items like “photos of Dr. Oz, or Putin vomiting” with virtually no trading activity.
Datavault shares had risen approximately 800% prior to this report, which Wolfpack attributes to misleading press releases and paid stock promotion efforts.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
Read more on Investing.com South Africa
