--- title: "Datavault AI Plunges 50% as Exchange Withdrawal Issue Halts Access to Bitcoin" description: "The company's inability to withdraw from Biconomy since June forces restatement of financials, erasing $92.2 million in reported 2025 assets." url: https://basisdesk.news/analysis/datavault-ai-plunges-biconomy-bitcoin-withdrawal-issue published: 2026-10-31T14:01:17.238Z modified: 2026-10-31T14:01:17.238Z section: Institutions & ETFs author: Basis Desk Newsroom (AI-generated, source-verified) sentiment: bearish tickers: [BTC, DVLT] tags: [corporate treasury, exchange withdrawal, financial restatement] license: Quote with attribution to Basis Desk (basisdesk.news). Not financial advice. --- # Datavault AI Plunges 50% as Exchange Withdrawal Issue Halts Access to Bitcoin The company's inability to withdraw from Biconomy since June forces restatement of financials, erasing $92.2 million in reported 2025 assets. ## At a glance - **What happened:** Datavault AI disclosed it has been unable to withdraw its Bitcoin from the Biconomy exchange since June. - **Why it matters:** The company must restate its financials, erasing $92.2 million in reported 2025 assets and reassessing its funding. - **Who is affected:** Datavault AI shareholders, Scilex Holding Company, and Biconomy. - **What's next:** No next step announced - **Primary source:** [Bitcoin Trades Below $80,000 as Long Liquidations Hit $1.34 Billion](https://thedefiant.io/news/markets/bitcoin-trades-below-80-000-as-long-liquidations-hit-1-34-billion) — thedefiant.io ## Key points - Datavault AI shares dropped 49.55% after the firm announced it could not withdraw Bitcoin from Biconomy since June. - The inability to access the funds forces Datavault to restate financials, cutting reported 2025 assets by $92.2 million. - Biconomy supplied the Bitcoin for Scilex's initial $150 million investment in Datavault via off-chain transfers. ## Editorial remark - **Context:** Datavault AI entered a deal to receive Bitcoin as funding for its operations, relying on an exchange to custody the assets. - **Impact:** The withdrawal failure severely impacts Datavault's liquidity and valuation, forcing a massive accounting revision. - **Watch:** Any response from Biconomy regarding the withdrawal request or the status of the Bitcoin backing Datavault's account. Datavault AI shares fell nearly 50% on Tuesday after the company disclosed it could not withdraw its Bitcoin from the Biconomy exchange and must restate its financial results [8]. The stock closed at $0.067, recording a 49.55% drop on trading volume of approximately 244 million shares [8]. The withdrawal issue has been ongoing since June [8]. ## Off-Chain Transfers and Restatements The situation originates from a September 2025 deal in which Scilex Holding Company agreed to buy $150 million of Datavault shares and warrants using Bitcoin [8]. Scilex credited 1,309.04 BTC to Datavault's account at Biconomy via off-chain transfers [8]. Datavault later sold 491.4 BTC back to Scilex for roughly $40.5 million in cash [8]. However, when Datavault attempted to withdraw funds to an external account in June, the transfer could not be completed, and the issue remained unresolved as of a Monday filing [8]. Datavault stated that the Bitcoin credited through the Scilex investment should have been recorded as an amount owed by Scilex for the shares [8]. This accounting change will reduce Datavault's reported assets by $92.2 million at the end of 2025 and by $49 million as of June 2026 [8]. The company had previously relied on the Bitcoin balances to fund its operations and must now reevaluate that assumption [8]. Biconomy also supplied the Bitcoin for the initial investment, having bought $200 million of shares in Scilex's subsidiary Semnur using the cryptocurrency [8]. ## Market Context Amid the Withdrawal Issue The withdrawal complication emerged as Bitcoin faced resistance between $84,000 and $85,000 [4]. Glassnode reported that 4.3% of the total BTC supply, or 864,520 BTC, last moved onchain within this price band, primarily linked to a single large holder [4]. The analysis noted that Bitcoin has struggled to sustain daily closes above $85,000, facing resistance at this level in May, September, and October [4]. Long-term holders also own approximately four million coins with a cost basis between $85,000 and $118,000, creating potential sell-side pressure if the price recovers to those levels [4]. At the same time, the broader crypto market navigated macroeconomic developments, with the Federal Reserve holding interest rates at 3.75% to 4% [2, 5]. The decision included two dissenting votes favoring a hike, and traders increased the odds of a December rate increase to 82.6% [2, 5]. Despite the hawkish hold, Bitcoin's options market priced in little added risk, with Deribit's implied volatility index remaining stable near 37.6 [5]. A significant expiration of about $11 billion in Bitcoin options, roughly 135,000 BTC, is scheduled for Friday on Deribit [2]. ## Sources 1. [Bitcoin Trades Below $80,000 as Long Liquidations Hit $1.34 Billion](https://thedefiant.io/news/markets/bitcoin-trades-below-80-000-as-long-liquidations-hit-1-34-billion) — thedefiant.io, 2026-10-30 2. [$11 Billion in Bitcoin Options Expire Tomorrow—Here's What It Means](https://decrypt.co/382171/11-billion-bitcoin-options-expire-tomorrow-what-means) — decrypt.co, 2026-10-29 3. [Morning Minute: Hedge Funds Left the BTC ETF Trade and Sovereign Wealth Stepped In](https://decrypt.co/382135/morning-minute-hedge-funds-left-the-btc-etf-trade-and-sovereign-wealth-stepped-in) — decrypt.co, 2026-10-29 4. [Bitcoin long-term resistance in focus as analysis sees selling risk above $85K](https://cointelegraph.com/markets/bitcoin-long-term-resistance-in-focus-as-analysis-sees-selling-risk-above-85k?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound) — cointelegraph.com, 2026-10-29 5. [Bitcoin Shrugs Off a Hawkish Fed as Volatility Bets Barely Budge](https://unchainedcrypto.com/bitcoin-shrugs-off-a-hawkish-fed-as-volatility-bets-barely-budge/) — unchainedcrypto.com, 2026-10-28 6. [Wall Street’s Fast Money Fled Bitcoin ETFs, Sovereign Funds Stepped In](https://decrypt.co/382059/wall-street-fast-money-fled-bitcoin-etfs-sovereign-funds) — decrypt.co, 2026-10-28 7. [Live updates: Bitcoin climbs above $81,000 as altcoins rally ahead of Fed decision](https://www.coindesk.com/business/2026/10/28/live-updates-bitcoin-climbs-above-usd81-000-as-majors-rally-ahead-of-fed-decision) — coindesk.com, 2026-10-28 8. [Bitcoin treasury stock plunges 50% after firm says it can’t access its BTC](https://www.coindesk.com/markets/2026/10/28/bitcoin-treasury-datavault-ai-plunges-50-after-firm-says-it-can-t-access-its-btc) — coindesk.com, 2026-10-28 --- Basis Desk Newsroom · AI-generated, source-verified · https://basisdesk.news/about/how-we-use-ai