Datavault AI shares fall nearly 50% after company says it can't withdraw Bitcoin
Datapoint AI loses half its value over lost Bitcoin access
Datavault AI, a U.S. company based in Oregon, saw its shares drop nearly 50% on Tuesday after it said it could not withdraw Bitcoin it held on the Biconomy exchange. The exchange is a platform where users deposit crypto for trading and storage.
The company also said it had to revise its financial results. The correction would cut reported assets by $92.2 million at the end of 2025 and by $49 million as of June 2026. Datavault shares closed at $0.067, with about 244 million shares traded.
What the company disclosed
The issue began in September 2025, when Scilex Holding Company agreed to buy $150 million of Datavault shares and warrants using Bitcoin. Scilex sent 1,309.04 BTC to Datavault's account at Biconomy through off-chain transfers, meaning the balances were updated inside the exchange without recording the movement on Bitcoin's blockchain.
Datavault later sold 491.4 BTC back to Scilex for about $40.5 million in cash. But when Datavault asked in June to move remaining Bitcoin out of Biconomy to an external account, the company said the request could not be completed and remained unfinished as of the filing on Monday.
Datavault had treated the Bitcoin credited by Scilex as cash it could use to fund operations. It now says those coins should instead be recorded as money owed by Scilex for the shares it bought, which would reduce shareholders' equity rather than show up as cryptocurrency assets.
Key numbers
- Share price fell 49.55% to close at $0.067 on Tuesday
- About 244 million shares traded
- Scilex agreed to invest $150 million in Datavault shares and warrants in September 2025
- 1,309.04 BTC was credited to Datavault's Biconomy account
- Datavault sold 491.4 BTC back to Scilex for roughly $40.5 million
- Assets to be reduced by $92.2 million at end of 2025 and $49 million as of June 2026
How the Bitcoin entered the picture
Biconomy was also involved in supplying the Bitcoin behind the investment. According to Scilex's June financial report, it sold $200 million of shares in its subsidiary Semnur to Biconomy for Bitcoin, then used $150 million of that Bitcoin to buy Datavault securities. These details come from filings cited by CoinDesk and have not been independently confirmed by Datavault in the material provided.
What remains unresolved
CoinDesk asked Biconomy about the failed withdrawal request and the Bitcoin that backed Datavault's account but did not receive a response as of Wednesday afternoon Asian time. It is not clear from the sources how much Bitcoin is affected beyond the amount held in the account, nor whether access has since been restored.
Why this matters for companies holding crypto
The incident shows the risk of keeping large crypto holdings on a single exchange. When Bitcoin moves off-chain inside an exchange, the balance is only visible to that platform and cannot be tracked on the public Bitcoin network. If a company cannot withdraw its funds, it may have to rewrite its financial statements and lose investor confidence.
What happens next
Datavault will restate its financial results to reflect the accounting correction. It must now reassess whether it had enough accessible funds to sustain operations, a question raised by the unresolved withdrawal. No timeline or next steps were provided in the filing.
Sources
Newisty Editorial Team covers technology, cryptocurrency, digital products, online platforms, developer tools and the wider digital economy. Our content is researched from official sources, company announcements, public documentation, market data and other primary or reputable sources. Articles are reviewed and edited before publication for clarity, accuracy and useful context.