Datavault AI Plunges 50% After Disclosing Inaccessible Bitcoin on Biconomy

Datavault AI shares plunged 49.55% on Tuesday after the firm disclosed in a filing that it has been unable to withdraw its bitcoin holdings from cryptocurrency exchange Biconomy since June ¹. The company stated that the unresolved withdrawal will require it to restate previous financial results and reassess whether those funds can sustain operating activities ¹. Datavault stock closed at $0.067 on Tuesday with approximately 244 million shares changing hands ¹.

The asset balance originated from a September 2025 transaction in which Scilex Holding Company agreed to acquire $150 million worth of Datavault shares and warrants using $BTC ¹. Scilex credited 1,309.04 BTC to Datavault’s Biconomy account using off-chain book transfers rather than on-chain settlements ¹. While Datavault subsequently sold 491.4 BTC back to Scilex for approximately $40.5 million in cash, its attempt to withdraw the remaining balance to an external wallet in June failed to execute and remained unresolved through Monday's filing ¹.

Off-Chain Transfers and Accounting Revisions

According to financial filings, Biconomy supplied the underlying cryptocurrency after purchasing $200 million in shares of Scilex subsidiary Semnur in exchange for bitcoin, after which Scilex allocated $150 million into Datavault securities ¹. Datavault concluded that the credited cryptocurrency should have been categorized as a receivable owed by Scilex rather than direct digital asset holdings ¹.

Accounting revisions will reduce Datavault’s reported assets by $92.2 million at the end of 2025 and by $49 million as of June 2026, offsetting shareholders' equity ¹. The operational snag comes as corporate bitcoin treasury buying slows sharply, placing additional scrutiny on corporate custody setups. Biconomy did not provide a comment regarding the withdrawal status ¹. At the time of writing, Bitcoin traded at $80,851.