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Bitcoin treasury Datavault AI plunges 50% after firm says it can’t access its BTC

www.coindesk.com ·Oct 28, 2026 · 5:28 AM UTC Full briefing
Bitcoin treasury Datavault AI plunges 50% after firm says it can’t access its BTC
Summary
  • Datavault AI shares plunged nearly 50 percent Tuesday after the company disclosed that it had been unable to withdraw bitcoin from the Biconomy exchange since June and would restate its financial results.
  • The company said bitcoin credited through Scilex Holding Company’s $150 million investment should have been recorded as an amount owed by Scilex, reducing reported assets by $92.2 million at the end of 2025 and $49 million as of June 2026.
  • Datavault had treated the bitcoin as funding available to sustain operations, but the unresolved withdrawal now requires the company to reassess that assumption.

Datavault AI (DVLT) shares plunged nearly 50% on Tuesday after a filing revealed that the company had been unable to withdraw bitcoin from crypto exchange Biconomy since June and would have to restate its financial results.

The stock closed at $0.067, down 49.55%, with roughly 244 million shares traded.

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 transfer could not be completed when it requested a withdrawal to an external account in June, the comapny said, and remained incomplete as of Monday’s filing.

Biconomy was also involved in supplying the bitcoin behind the investment. Scilex’s June financial report says it sold $200 million of shares in its subsidiary Semnur to Biconomy for bitcoin, then used $150 million to buy Datavault securities.

Datavault now says the bitcoin credited through Scilex’s investment should have been recorded as an amount Scilex owed for the shares. That amount would reduce shareholders’ equity instead of appearing among Datavault’s cryptocurrency assets.

The correction is expected to reduce reported assets by $92.2 million at the end of 2025 and $49 million as of June 2026. Datavault had counted those bitcoin balances as money it could draw on to keep the business running, but must now revisit the assessment.

CoinDesk contacted Biconomy about the withdrawal request and the bitcoin backing Datavault’s account and did not receive a response as of Asian afternoon hours Wednesday.

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