Datavault AI shares closed down 49.55% at $0.067 on Tuesday after the company disclosed that it has been unable to withdraw its bitcoin from the Biconomy exchange since June and will restate four reporting periods, according to CoinDesk.
Summary
- Datavault AI (Nasdaq: DVLT) fell 49.55% to $0.067 on Tuesday, with about 244 million shares traded.
- The company says a withdrawal of its bitcoin from Biconomy, requested in June, never completed.
- The 1,309.04 BTC had been credited through off-chain transfers under Scilex’s $150 million investment — never settled on the Bitcoin blockchain.
- Datavault will restate four reporting periods, cutting reported assets by up to $92.2 million in one period.
The problem traces back to a September 2025 agreement in which Scilex Holding Company agreed to buy $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 — internal balance changes inside the exchange, not transactions on the Bitcoin blockchain.
A withdrawal that never arrived
Datavault later sold 491.4 BTC back to Scilex for about $40.5 million in cash. But when the company asked in June to withdraw bitcoin to an external account, the transfer could not be completed — and it remained incomplete as of the company’s Form 8-K filing on October 26.
Biconomy was also on the supply side of the deal: Scilex’s June financial report says it sold $200 million of shares in its subsidiary Semnur to Biconomy for bitcoin, then used $150 million of it to buy the Datavault securities. CoinDesk contacted Biconomy and received no response.
Four periods to be restated
Datavault now says the credited bitcoin should have been recorded as an amount Scilex owed for the shares — a subscription receivable and reduction of shareholders’ equity — rather than as a cryptocurrency asset. The restatements cut reported assets by $8.1 million for the period ended September 30, 2025, $92.2 million for December 31, 2025, $57.1 million for March 31, 2026 and $49 million for June 30, 2026. The company is also reassessing its going-concern evaluation.
The episode is a custody lesson with a stock ticker attached: for nine months the bitcoin existed only as an entry on an exchange’s internal ledger, and the first real test of ownership — a withdrawal — is the one that failed.
