Datavault AI shares halve after firm says it cannot withdraw bitcoin held at Biconomy since June
Datavault AI stock fell nearly 50% after a filing disclosed that withdrawals of its bitcoin from the Biconomy exchange have been blocked since June and that its financial results must be restated.
CryptoSource: CoinDesk
Shares of Datavault AI (DVLT) dropped almost 50% on Tuesday after a regulatory filing disclosed that the company has been unable to move bitcoin off the crypto exchange Biconomy since June. The filing also said earlier financial results will have to be restated. The stock closed at $0.067, a fall of 49.55%, on volume of about 244 million shares.
The issue goes back to a September 2025 agreement with Scilex Holding Company, which committed to buy $150 million of Datavault shares and warrants using bitcoin. Scilex credited 1,309.04 BTC to Datavault's account at Biconomy through off-chain transfers, so the balances were adjusted inside the exchange rather than recorded as transactions on the Bitcoin blockchain. Datavault later sold 491.4 BTC back to Scilex for roughly $40.5 million in cash.
When Datavault asked for a withdrawal to an external account in June, the transfer could not be completed. According to the company, it was still unfinished as of Monday's filing.
Biconomy also played a part in sourcing the bitcoin behind the deal. Scilex's June financial report states that it sold $200 million of shares in its subsidiary Semnur to Biconomy in exchange for bitcoin, and then used $150 million of that to purchase Datavault securities.
Datavault now says the bitcoin credited through the Scilex investment should have been booked as an amount Scilex owed for the shares. Under that treatment it would reduce shareholders' equity instead of being listed among the company's cryptocurrency assets. The correction is expected to cut reported assets by $92.2 million at the end of 2025 and by $49 million as of June 2026.
Datavault had treated these bitcoin balances as funds it could draw on to keep operating, and it must now reassess that conclusion. CoinDesk contacted Biconomy about the withdrawal request and the bitcoin backing Datavault's account but had received no reply by Asian afternoon hours on Wednesday.
Based on reporting by CoinDesk.