Datavault AI (DVLT) shares collapsed nearly 50% on Tuesday after a regulatory filing revealed that the company had been unable to withdraw Bitcoin held at cryptocurrency exchange Biconomy since June. The disclosure also means the firm must revise its financial statements to reflect a significant accounting adjustment.
The Oregon-based company’s shares closed at $0.067, down 49.55% for the session. Approximately 244 million shares were traded.
The situation originated from a September 2025 deal with Scilex Holding Company, which agreed to acquire $150 million worth of Datavault shares and warrants using Bitcoin.
As part of the transaction, Scilex deposited 1,309.04 BTC into Datavault’s Biconomy account through off-chain transfers. These transfers changed account balances within the exchange without recording the transactions directly on Bitcoin’s blockchain. Datavault later sold 491.4 BTC back to Scilex for approximately $40.5 million in cash.
Datavault said it attempted to move Bitcoin to an external account in June but was unable to complete the withdrawal. The transfer remained unresolved when the company submitted its filing on Monday.
Scilex’s financial disclosures also linked Biconomy to the transaction. Its June report stated that Scilex sold $200 million worth of shares in its subsidiary Semnur to Biconomy in exchange for Bitcoin, then used $150 million to purchase Datavault securities.
Datavault revises its Bitcoin accounting
Datavault now says the Bitcoin credited through Scilex’s investment should have been recorded as an amount owed by Scilex in connection with the share purchase, rather than being classified as cryptocurrency assets held by Datavault.
Under the revised accounting treatment, the amount would reduce shareholders’ equity instead of appearing among the company’s digital asset holdings.
The correction is expected to reduce reported assets by $92.2 million as of December 2025 and by $49 million as of June 2026.
Previously, Datavault had treated the Bitcoin balances as assets it could access to fund its business operations. The company must now reassess that position in light of the withdrawal difficulties and the revised accounting classification.
CoinDesk contacted Biconomy for comment on the pending withdrawal and the Bitcoin backing Datavault’s account. The exchange had not responded by Wednesday afternoon in Asia.
