Datavault AI (DVLT) shares plunged nearly 50% on Tuesday after the company disclosed that it had been unable to withdraw Bitcoin held on crypto exchange Biconomy since June. The revelation also requires the firm to revise its financial statements and reduce the value of its reported assets.
The Oregon-based company closed the session at $0.067, representing a 49.55% drop, as trading volume reached approximately 244 million shares.
The issue dates back to a September 2025 agreement with Scilex Holding Company, which committed to buying $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 transactions. These transfers updated balances within the exchange without recording the movements directly on Bitcoin’s blockchain. Datavault subsequently sold 491.4 BTC back to Scilex for around $40.5 million in cash.
However, when Datavault attempted to withdraw Bitcoin to an external account in June, the transfer failed to go through. The company confirmed that the withdrawal remained unresolved as of its Monday filing.
Scilex’s financial report for June also described 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.
Bitcoin accounting changes force asset reduction
Datavault now believes the Bitcoin credited through Scilex’s investment should have been classified as an amount owed by Scilex for the shares, rather than being recorded as cryptocurrency assets held by Datavault.
The revised treatment would reduce shareholders’ equity instead of including the amount in the company’s digital asset holdings.
The accounting adjustment is expected to lower Datavault’s reported assets by $92.2 million at the end of 2025 and $49 million as of June 2026.
Previously, the company had counted the Bitcoin balances as resources available to support its business operations. It must now reconsider that assessment following the unresolved withdrawal and the change in accounting treatment.
CoinDesk sought comment from Biconomy regarding the withdrawal request and the Bitcoin associated with Datavault’s account. The exchange had not responded by Wednesday afternoon in Asia.
