Datavault AI stock drops 50% as firm cannot access BTC
Datavault AI shares plunged nearly 50% after a regulatory filing revealed the Oregon-based firm has been unable to withdraw bitcoin from crypto exchange Biconomy since June and must restate its financial results. The stock closed at $0.067, down 49.55%, with roughly 244 million shares traded.
Bitcoin Treasury Holdings Spark Selloff at Datavault AI
The market reaction reflects deep concern over corporate digital asset custody. Datavault AI is among a growing number of public companies adding bitcoin to their corporate treasuries to diversify holdings.
The withdrawal obstacle leaves shareholders exposed to risks tied to counterparty reliability and exchange operations rather than core business performance.
Off-Chain Transfers Trace Back to Scilex Agreement
The underlying custody complications trace back to a September 2025 agreement with Scilex Holding Company. Under the deal, Scilex 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. This meant the balances changed within the exchange ledger rather than through transactions on the Bitcoin blockchain.
Datavault subsequently sold 491.4 BTC back to Scilex for approximately $40.5 million in cash. However, when Datavault requested a withdrawal of the remaining balance to an external account in June, the transfer could not be completed. The funds remained trapped as of Monday’s filing.
Further complicating the corporate transactions, Scilex disclosed in its June financial report that it sold $200 million of shares in its subsidiary Semnur to Biconomy in exchange for bitcoin, subsequently using $150 million of that digital asset to buy Datavault securities.
Datavault AI Fails to Explain Frozen Withdrawal Requests
Datavault AI has not publicly detailed Biconomy’s internal operations or provided an explanation for why the withdrawal request remains frozen. Markets continue to trade cautiously as investors evaluate the fallout from the impending financial restatement.
Frequently Asked Questions About the Datavault AI Bitcoin Dispute
What caused the sharp decline in Datavault AI stock?
Datavault AI shares crashed roughly 50% after a regulatory filing disclosed that the company could not withdraw bitcoin held on the Biconomy platform.
Why is Datavault unable to access its bitcoin?
The specific cause remains unverified in public reporting. The company noted the withdrawal failure persisted from June through Monday’s filing without detailing technical or liquidity justifications.
How did the bitcoin enter the company account?
Scilex Holding Company transferred 1,309.04 BTC to Datavault’s account at Biconomy via off-chain exchange credits as part of a September 2025 share purchase agreement.
Corporate balance sheets face mounting pressure as markets reprice firms whose digital asset custody arrangements lack transparent, verifiable access.