Datavault AI Shares Plunge Nearly 50% After Revealing It Cannot Withdraw Bitcoin Held on Biconomy Exchange
Key Takeaways
- •Datavault AI's shares fell 49.55% to $0.067 after the company disclosed it could not withdraw Bitcoin held on the Biconomy exchange since June 2026.
- •The company will restate four financial reports because Bitcoin received under a $150 million share deal with Scilex Holding should have been recorded as a receivable rather than a corporate digital asset.
- •The accounting corrections are expected to reduce reported assets by $92.2 million at the end of 2025 and by $49 million as of June 2026.
- •Management is reassessing the company's ability to continue operating as a going concern because collecting the amounts owed by Scilex remains uncertain.
- •The case underscores the risks corporate Bitcoin treasuries face when relying on third-party exchanges for custody, particularly when holdings are expected to fund business operations.
Datavault AI Inc. (Nasdaq: DVLT) saw its shares fall 49.55% to $0.067 after disclosing that it has been unable to withdraw Bitcoin held at the cryptocurrency exchange Biconomy since June 2026.
Four Financial Reports to Be Restated
The company also plans to restate four financial reports after determining that Bitcoin received under a $150 million share deal with Scilex Holding should have been recorded as a receivable — an amount owed to the company — rather than as a corporate digital asset on its balance sheet. A restatement is a formal correction of figures in previously issued financial statements.
The accounting corrections are expected to reduce reported assets by $92.2 million at the end of 2025 and by $49 million as of June 2026.
Management is also reassessing the company's ability to continue operating as a going concern — a determination of whether a business can sustain its operations for at least the next 12 months — as collection of the amounts owed by Scilex remains uncertain. The completed restatements, the conclusion of the going-concern reassessment, and any update on regaining access to the Bitcoin on Biconomy are the immediate developments to watch.
The Scilex Deal
The Bitcoin in question was received under a $150 million share agreement with Scilex Holding Company, a Nasdaq-listed biopharmaceutical company. With collection of the amounts owed by Scilex uncertain and the holdings inaccessible on Biconomy since June 2026, the restated figures and the access problem directly affect the company's reported financial position.
Broader Context
Corporate Bitcoin treasuries have become increasingly common among publicly listed companies since 2020, when MicroStrategy began building large corporate Bitcoin holdings. Such holders typically rely on third-party exchanges or qualified custodians to store and access their assets.
The disclosure highlights the risks of corporate Bitcoin treasuries relying on third-party exchanges for custody and access to assets, particularly when those holdings are counted on to fund business operations. In Datavault AI's case, both the accessibility of its holdings and the accounting treatment of what it is owed — rather than the size of the treasury alone — shape how much of that Bitcoin exposure translates into usable corporate resources.
Source: BitcoinKE
