Datavault AI shares plunged nearly 50% on Tuesday after the bitcoin treasury company revealed it has been unable to withdraw bitcoin held on the Biconomy exchange since June — and that it will have to restate its financial results.
Bitcoin (Credits: CoinDesk)
The stock closed at $0.067, down 49.55%, with roughly 244 million shares traded, according to CoinDesk, after the disclosure rattled investors who had treated the company’s bitcoin holdings as funding available to sustain operations.
Datavault AI Bitcoin Locked on Biconomy Since June
The problem traces back to a September 2025 agreement with Scilex Holding Company, which agreed to purchase $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 — meaning the balances changed within the exchange rather than through transactions on Bitcoin’s blockchain.
Datavault subsequently sold 491.4 BTC back to Scilex for about $40.5 million in cash. But the remaining bitcoin, the company said, could not be withdrawn from Biconomy — a fact that now forces a major accounting correction.
According to the company, the bitcoin credited through Scilex’s investment should have been recorded as an amount owed by Scilex, rather than as assets freely available to the company. That correction will cut reported assets by $92.2 million at the end of 2025 and by $49 million as of June 2026.
What the Datavault AI Restatement Means
For investors, the episode is a stark reminder of the difference between bitcoin shown as a balance on an exchange and bitcoin actually under a company’s control. Off-chain credits, withdrawal freezes and counterparty exposure can turn a headline treasury figure into something far less solid — and restatements of that size inevitably raise questions about how the holdings were vetted in the first place.
Datavault said the unresolved withdrawal now requires it to reassess the assumption that the bitcoin was funding available to sustain operations. The company has not, in the reported disclosure, said when — or whether — the Biconomy balances will become accessible.
The plunge adds Datavault to a growing list of bitcoin treasury companies whose shares have swung violently on custody and accounting news, even as bitcoin itself continues to trade as a mainstream asset. For now, shareholders are left waiting on two things: access to the coins, and restated numbers they can trust.
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Source: CoinDesk — read the full story there.
