Datavault AI shares fell almost 50% after the company disclosed that it has been unable to withdraw bitcoin held at the Biconomy exchange since June, forcing it to reassess how the cryptocurrency was recorded in its accounts and restate financial results.
Shares fall after withdrawal problem emerges
The Oregon-based company’s stock closed Tuesday at $0.067, down 49.55%, with about 244 million shares changing hands. The disclosure centered on bitcoin linked to a $150 million investment by Scilex Holding Company, under an agreement reached in September 2025.
Scilex agreed to buy Datavault shares and warrants using bitcoin. It credited 1,309.04 BTC to Datavault’s account at Biconomy through off-chain transfers. In an off-chain transfer, the balance is adjusted within an exchange rather than moved directly across the Bitcoin blockchain.
Datavault later sold 491.4 BTC back to Scilex for approximately $40.5 million in cash. However, when Datavault sought to move bitcoin from Biconomy to an external account in June, the withdrawal could not be completed. The company said the issue was still unresolved as of its latest filing.
According to CoinDesk, Biconomy did not respond to questions about Datavault’s withdrawal request or the bitcoin supporting the company’s account as of Wednesday afternoon in Asia.
Accounting correction could cut reported assets
Datavault said the bitcoin credited through Scilex’s investment should not have been recorded as cryptocurrency assets that the company controlled and could use. Instead, the amount should have been treated as money owed by Scilex for the Datavault securities it purchased.
That accounting change is expected to reduce Datavault’s reported assets by $92.2 million at the end of 2025. The reduction is expected to be $49 million as of June 2026. The company also said the adjustment would affect shareholders’ equity, because the bitcoin balances would no longer appear as assets on its balance sheet.
The distinction is important because an asset on a company’s balance sheet generally represents a resource it controls and can use. Datavault had treated the bitcoin credited to its Biconomy account as funding available to support its operations. The unresolved withdrawal means the company must revisit that assumption and correct its financial reporting.
A restatement is a revision of previously reported financial statements when a company determines that earlier figures did not properly reflect its financial position. In Datavault’s case, the planned correction relates specifically to the treatment and accessibility of the bitcoin associated with the Scilex transaction.
How the bitcoin moved through the transaction
The arrangement involved more than Datavault and Scilex. Scilex’s June financial report said it sold $200 million of shares in its subsidiary Semnur to Biconomy in exchange for bitcoin. Scilex then used $150 million of that bitcoin-related transaction to acquire Datavault securities.
Datavault said the 1,309.04 BTC was credited to its Biconomy account through transfers that took place within the exchange. The company was therefore showing the balance in its accounts, but later found that it could not complete a withdrawal to an outside wallet or account when it tried in June.
The filing leaves the status of the withdrawal unresolved. It also means Datavault is reassessing whether the bitcoin could properly be considered available to fund its business. The company’s disclosure did not provide a resolution to the access problem.
Current crypto market picture
Moneyiar market data at 22:39 on October 25, 2026, showed Bitcoin at $80,430.51, down 0.08% over 24 hours and 1.32% over seven days.
Other tracked assets showed mixed performance:
- Compound was $21.13, down 10.42% over 24 hours and up 0.30% over seven days.
- Data Network was $0.1504, down 4.42% over 24 hours and 7.71% over seven days.
- REAL was $0.1927, up 6.94% over 24 hours and 3.94% over seven days.
These market movements provide context for the broader digital-asset environment, but Datavault’s share-price decline followed the company-specific disclosure about access to its bitcoin and the resulting accounting correction.
