Datavault AI saw its stock price plunge by up to 50 percent after revealing that it is unable to withdraw its Bitcoin holdings from the crypto platform Biconomy, compromising a $150 million transaction with Scilex and triggering a massive financial restatement. The corporate treasury issue, which left the digital assets inaccessible for four months, has forced the firm to adjust its financial records and significantly reduce its reported valuation. The market reacted swiftly to the disclosure as investors digested the operational failure and the resulting balance sheet corrections.
How much asset value is affected by the Bitcoin withdrawal issue?
Datavault AI will reduce its reported assets by $92.2 million at the end of 2025 due to its inability to access the cryptocurrency held on Biconomy. The accounting correction reflects digital assets that have remained stuck on the platform for four months without a clear resolution for retrieval. As a result of the operational lockup, the company was forced to restate its financial figures to accurately convey its accessible treasury holdings to shareholders and regulators.
How does the Biconomy lockup impact the Scilex deal?
Datavault AI risked a major $150 million agreement with Scilex, under which Scilex had agreed to purchase shares of Datavault AI using Bitcoin as the payment method. The inability to withdraw and manage the underlying digital assets from Biconomy directly clouds the status of the transaction. Because the capital tied to the deal cannot be moved or verified as accessible treasury reserves, the execution and settlement of the equity purchase have been severely disrupted.
The company said the accounting correction will cut reported assets by $92.2 million at the end of 2025 after bitcoin held on Biconomy could not be withdrawn.
Why did Datavault AI stock crash following the news?
Datavault AI stock crashed by up to 50 percent because the inability to access its Bitcoin reserves undermined investor confidence in the reliability of the company's financial statements. Financial outlets highlighted that the firm's balance sheet metrics could no longer be fully relied upon given the persistent four-month withdrawal failure. The steep decline in share value reflects broader market anxieties regarding custodial risk and treasury management for corporate entities holding large cryptocurrency positions.
What does this mean for corporate Bitcoin treasuries?
Datavault AI demonstrates the significant custodial and liquidity risks facing public companies that integrate digital currencies into their corporate balance sheets. When firms use centralized exchanges or third-party platforms to custody corporate reserves, any access restrictions or platform freezes can directly threaten corporate transactions and force painful financial restatements. Analysts note that these operational vulnerabilities can rapidly wipe out equity value when digital treasury assets become illiquid or unreachable.
Market Snapshot
| Asset | Price | 24h | Market Cap |
|---|---|---|---|
 Bitcoin BTC | $80,818 | +1.58% | $1624.8B |
 Ethereum ETH | $2,350 | +2.08% | $287.1B |
 BNB BNB | $744.05 | +1.26% | $97.9B |
 XRP XRP | $1.32 | +2.00% | $83.9B |
 Solana SOL | $101.82 | +2.25% | $60.1B |
 Dogecoin DOGE | $0.0797 | +3.33% | $12.5B |
 Cardano ADA | $0.206 | +1.08% | $7.7B |
Live data: CoinGecko — 2026-10-28 07:20 UTC
