Datavault AI Shares Plunge as Top Executives Offload Millions—Is a Market Crash Imminent?

Insider Selling Swells at Datavault AI – What It Means for Investors

Recent filings from Scilex Holding Co reveal a rapid sequence of sell‑orders that have cut the company’s shares from 239 million to just under 230 million in less than three days. The moves, executed at prices ranging from $1.07 to $1.37, coincide with a broader wave of insider activity across the board, including high‑profile executives such as CEO Bradley Nathaniel T and CFO Moyer Brett. With the stock currently trading near $1.16 and a year‑long decline of almost 46 %, the sell‑pressure has intensified a narrative of undervaluation that may or may not reflect fundamental weakness.

Market Sentiment vs. Company Fundamentals

The transaction on January 6 occurred against a backdrop of markedly negative social‑media sentiment (-20) but high buzz (106 %). While a low price change of -0.13 % suggests the market has not yet reacted to the volume of shares offloaded, the buzz indicates heightened attention that could presage a short‑term price volatility spike. The 52‑week high of $4.10 contrasts starkly with the current price, underscoring a steep equity discount that some investors may view as a buying opportunity; others may see the insider selling as a warning sign of potential liquidity or valuation concerns.

What Does Scilex’s Pattern Tell Us?

Scilex Holding Co, a passive investor in Datavault AI, has been steadily trimming its stake since late 2025. In December alone, the company sold more than 20 million shares, reducing its position from 261 million to 244 million. The most recent three‑day sell‑off represents a cumulative outflow of roughly 14 million shares, a 5‑6 % decline in holdings. Historically, Scilex’s disposals have followed periods of price volatility and corporate milestones—such as the 2026 edge‑network rollout—suggesting that the firm may be rebalancing its portfolio in anticipation of either a short‑term dip or a longer‑term strategic shift.

Investor Takeaway

For shareholders, the current insider activity signals that key stakeholders are comfortable liquidating positions at current levels, perhaps believing that the stock’s upside has plateaued. However, the underlying fundamentals—particularly the negative P/E ratio and the steep decline in close price—raise questions about whether the share price truly reflects the company’s growth prospects from the upcoming edge‑network deployment. Investors should weigh the potential for a rebound against the risk of further sell‑pressure and the possibility that the market may over‑react to the buzz surrounding the insider trades.