Datavault AI Drops 50% After Bitcoin Issue at Biconomy
The withdrawal block at Biconomy is forcing Datavault AI to revise its numbers. The case exposes risks around custody and off-chain Bitcoin accounting.
Key Takeaways
- Datavault AI fell nearly 50% on Tuesday after it turned out the company had been unable to withdraw Bitcoin from crypto exchange Biconomy since June.
- The company has to restate its financial figures because the received Bitcoin should have been booked differently, according to the filing.
- The case highlights risks around custody, settlement, and actual access to crypto on an external exchange.
Datavault AI saw its stock plunge nearly 50% on Tuesday after a filing showed that the company had been unable to withdraw Bitcoin from crypto exchange Biconomy since June. As a result, the company has to restate its financial figures. The case also raises questions about how safe and accessible crypto on an external exchange really is.
What Went Wrong
Datavault AI's stock (DVLT) closed at $0.067 (€0.060), down 49.55%. About 244 million shares changed hands. According to the company, the problem started after a September 2025 agreement with Scilex Holding Company, which wanted to buy $150 million (€135 million) worth of Datavault shares and warrants with Bitcoin.
Scilex credited 1,309.04 BTC to Datavault's account at Biconomy through off-chain transfers. That moves the balance within the exchange, without any transactions showing up on the Bitcoin mainchain. Datavault then sold 491.4 BTC back to Scilex for about $40.5 million (€36.3 million) in cash.
Accounting Has to Be Revised
When Datavault requested a withdrawal to an external account in June, that transfer could not be completed. The filing says this still had not been resolved by Monday. The company now says the Bitcoin that came in through Scilex should actually have been booked as an amount Scilex still owed for the shares.
That matters for the balance sheet. Instead of being treated as a crypto asset, that amount should have been recorded as a reduction in equity. Datavault therefore expects reported assets to come in $92.2 million (€82.7 million) lower at the end of 2025 and $49 million (€43.9 million) lower by June 2026.
The company had previously counted those Bitcoin balances as money it could use to keep the business running. That estimate now has to be reviewed.
Why This Matters
For European crypto followers, this case shows how big the gap can be between Bitcoin on paper and Bitcoin you can actually withdraw. Especially with large amounts and through a third party, an accounting or operational mistake can flow straight into a company's annual results.
The issue also shows that crypto exposure for public companies is not just about price moves, but also about custody, settlement, and access to the coins themselves. That makes these setups especially vulnerable to mistakes or delays at a crypto exchange. The debate around Bitcoin custody at Coinbase also shows how quickly questions about control and verifiable ownership can escalate once large amounts get stuck.
