TL;DR
- Datavault AI shares plunged nearly 50% after the company disclosed that it has been unable to withdraw its Bitcoin from the Biconomy exchange since June.
- The issue involves 1,309.04 BTC transferred through Biconomy as part of a $150 million investment agreement with Scilex Holding Company.
- Datavault AI will have to restate its financial statements, reducing its reported assets by $92.2 million at the end of 2025 and by $49 million as of June 2026.
Datavault AI (DVLT) shares plunged 49.55% after the company disclosed that it was unable to withdraw Bitcoin from the Biconomy exchange and would have to restate its financial statements due to the accounting treatment of those assets.
The U.S.-based company, which follows a Bitcoin treasury strategy, closed the trading session at $0.067 per share, with trading volume approaching 244 million shares.
The issue dates back to an agreement signed in September 2025 with Scilex Holding Company, which committed to purchasing $150 million in Datavault AI shares and warrants using BTC.
Datavault AI Unable to Withdraw Its Bitcoin From Biconomy
As part of the transaction, Scilex credited 1,309.04 BTC to Datavault AI’s account on Biconomy. The transfers were conducted off-chain, through internal balance adjustments on the exchange.
The firm subsequently sold 491.4 BTC back to Scilex for approximately $40.5 million in cash.
However, when the company requested to transfer its Bitcoin to an external account in June 2026, Biconomy failed to complete the withdrawal. The transaction remained pending when Datavault submitted its regulatory filing.
The exchange was also involved in the transactions that financed the investment. According to a Scilex financial report, the company sold $200 million in shares of its subsidiary Semnur to Biconomy in exchange for Bitcoin and subsequently used $150 million to purchase Datavault securities.
Accounting Restatement Will Reduce Reported Assets by $92.2 Million
Datavault AI acknowledged that the Bitcoin credited through Scilex’s investment should not have been recorded as cryptocurrency assets.
Instead, the company believes the corresponding amount should be recorded as an outstanding receivable from Scilex for the securities purchased, resulting in a reduction in shareholders’ equity.
The adjustment will reduce reported assets by $92.2 million at the end of 2025 and by approximately $49 million as of June 30, 2026.
The company will also have to reassess its liquidity evaluations, as it had previously included those Bitcoin balances among the resources available to fund its operations.
The inability to withdraw the funds and the financial statement restatement were disclosed in documents Datavault filed with U.S. regulators.
