Datavault AI Shares Plunge 49.55% After Company Reports Inaccessible Bitcoin Holdings
Datavault AI (DVLT) shares fell 49.55% on Tuesday after the company disclosed that it had been unable to withdraw bitcoin held through cryptocurrency exchange Biconomy since June. The disclosure also means Datavault AI must revise previously reported financial results to reflect how the disputed cryptocurrency balances should have been accounted for.
The stock closed at $0.067, with approximately 244 million shares changing hands. The disclosure raises questions about the company's access to cryptocurrency it had previously treated as an asset available to support its operations.
Bitcoin Withdrawal Problem Dates Back to June
The issue stems from a September 2025 agreement involving Scilex Holding Company, which agreed to purchase $150 million worth of Datavault AI shares and warrants using bitcoin.
Under the arrangement, Scilex credited 1,309.04 BTC to Datavault AI's account at Biconomy through off-chain transfers. These transfers changed the recorded balances within the exchange rather than moving bitcoin through transactions on the Bitcoin blockchain.
Datavault subsequently sold 491.4 BTC back to Scilex in exchange for approximately $40.5 million in cash. However, when Datavault attempted to withdraw bitcoin to an external account in June, the transfer could not be completed. The company said the withdrawal remained unresolved as of its Monday filing.
Scilex and Biconomy Were Both Involved in the Transaction
Scilex's June financial report provides additional context on how the bitcoin used in the investment was obtained. The report said Scilex sold $200 million worth of shares in its subsidiary, Semnur, to Biconomy for bitcoin before using $150 million to acquire Datavault securities.
Biconomy's involvement in both the bitcoin supply and Datavault's account has drawn attention to the unresolved withdrawal. CoinDesk contacted the exchange regarding the withdrawal request and the bitcoin backing Datavault's account but had not received a response as of Wednesday afternoon in Asia.
Accounting Revision Could Reduce Reported Assets by Millions
Datavault AI now says the bitcoin credited through Scilex's investment should have been recorded as an amount owed by Scilex in connection with the shares, rather than as cryptocurrency assets held by Datavault.
Under the revised accounting treatment, the amount would reduce shareholders' equity instead of being recognized among the company's cryptocurrency holdings. The change is expected to reduce Datavault's reported assets by $92.2 million at the end of 2025 and $49 million as of June 2026.
The adjustment also affects how Datavault assesses the resources available to fund its business. The company had previously counted the bitcoin balances as assets it could access to support ongoing operations. It must now reassess that position in light of the unresolved withdrawal and the revised accounting treatment.
The disclosure leaves two important issues outstanding: the company's ability to access the bitcoin associated with the transaction and the financial reporting adjustments required to reflect the balances accurately. The available information does not establish when the withdrawal will be completed.
source: coindesk
Writer: Ethan Collins
Crypto Journalist
Ethan Collins reports on developments across the cryptocurrency and blockchain sector. His work covers market movements, protocol updates, regulatory changes, and emerging trends in digital assets.
He focuses on presenting complex topics in a clear and accessible manner for a broad readership.
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