Datavault AI plunges 50% after firm cannot access BTC from Biconomy exchange

The company stated that an accounting adjustment will decrease reported assets by $92.2 million by the close of 2025 because Bitcoin held on Biconomy could not be withdrawn.

This issue stems from a September 2025 arrangement where Scilex Holding Company committed to purchasing $150 million worth of Datavault shares and warrants using Bitcoin.

Scilex credited 1,309.04 BTC to Datavault’s account at Biconomy via off-chain transfers. Subsequently, Datavault sold 491.4 BTC back to Scilex for approximately $40.5 million in cash.

The transfer stalled when Datavault attempted to withdraw the assets to an external account in June, a status that persisted as of the filing.

Datavault concluded that the Bitcoin credited through Scilex’s investment should have been recognized as an amount Scilex owed for the shares, which would reduce shareholders’ equity rather than appearing as cryptocurrency assets.

This correction is projected to lower reported assets by $92.2 million at year-end 2025, and by $49 million as of June 2026.

Management must now re-evaluate the assumption that the Bitcoin balances represented available funding for ongoing operations.

The regulatory and institutional response to such events highlights the operational risks associated with custody arrangements and the classification of digital assets within corporate balance sheets.

Why it matters

This situation highlights significant operational and accounting risks associated with holding digital assets on exchanges. Regulators and investors will be watching how the company addresses its going-concern status following this asset inaccessibility.