Datavault AI Shares Sink After Firm Says Its Bitcoin Holdings Are Inaccessible

Datavault AI (DVLT) stock plunged 49.55% on Tuesday after the company disclosed that it had been unable to withdraw Bitcoin held on cryptocurrency exchange Biconomy since June. The issue has also forced the company to revise its financial reporting, resulting in a significant reduction in its reported assets.

Shares of the Oregon-based firm closed at $0.067, while trading volume reached approximately 244 million shares.

The problem originated from a September 2025 agreement with Scilex Holding Company, which agreed to purchase $150 million worth of Datavault shares and warrants using Bitcoin.

Under the deal, Scilex transferred 1,309.04 BTC to Datavault’s account on Biconomy through off-chain transfers. These transactions updated balances within the exchange without being recorded directly on Bitcoin’s blockchain. Datavault later sold 491.4 BTC back to Scilex for about $40.5 million in cash.

However, Datavault said it was unable to complete a withdrawal to an external account when it attempted the transfer in June. The Bitcoin remained inaccessible as of the company’s filing on Monday.

Scilex’s June financial report also detailed Biconomy’s involvement in the arrangement. According to the report, Scilex sold $200 million worth of shares in its subsidiary Semnur to Biconomy in exchange for Bitcoin, then used $150 million to acquire Datavault securities.

Revised accounting treatment lowers reported assets

Datavault now says the Bitcoin credited through Scilex’s investment should have been recorded as an amount owed by Scilex for the shares, rather than as cryptocurrency assets held by Datavault.

Under the revised treatment, the amount would reduce shareholders’ equity instead of being included in the company’s digital asset holdings.

The accounting adjustment is expected to reduce reported assets by $92.2 million as of the end of 2025 and $49 million as of June 2026.

Previously, Datavault had counted the Bitcoin balances as resources available to fund its operations. The company must now reassess that position because the withdrawal remains unresolved and the balances require a different accounting classification.

CoinDesk contacted Biconomy for comment on the withdrawal request and the Bitcoin associated with Datavault’s account. The exchange had not responded by Wednesday afternoon in Asia.