According to Woofun AI, the stock price of Datavault (DVLT.US) experienced a sharp drop of 49.55% on Tuesday, closing at $0.067, with a trading volume of about 244 million shares. The core reason is that the company has not been able to withdraw its Bitcoin holdings from wallets maintained by the crypto trading platform Biconomy since June.
This liquidity depletion forced Datavault AI to rewrite financial reports, completely changing the market's expectations about the state of its assets.
The more critical variable is the nature of this asset transfer. As far back as September 2025, Datavault reached an agreement with Scilex Holding Company (SCLX.US), which agreed to use Bitcoin to buy $150 million worth of Datavault shares and warrants. Scilex transferred 1,309.04 bitcoins to Datavault's Biconomy account through off-chain transfers. This process was not achieved through transactions on the Bitcoin blockchain. Subsequently, Datavault sold 491.4 bitcoins back to Scilex at a cash price of approximately $40.5 million, and currently 817.64 remain in the Biconomy account, which cannot be claimed.
According to data compiled by Woofun AI, Scilex revealed in its June financial report that it had used its subsidiary Semnur's 200 million shares in exchange for Bitcoin and then allocated 150 million US dollars to purchase Datavault Securities. Biconomy participated in the Bitcoin supply chain of this investment.
However, Datavault said that when it tried to transfer these bitcoins to an external account in June, it was unsuccessful, and the transfer had not been completed as of Monday when the report was submitted.
The company further warned in the same document that this restatement may delay submission of the 2026 third quarter report and introduce NASDAQ listing compliance risks; management has yet to complete an assessment of whether the relevant matters constituted a major internal control flaw.
Structurally, Datavault currently believes that those bitcoins transferred through Scilex investments should be treated as shares owed by Scilex, and that such payments should be included in shareholders' equity rather than listed in the company's cryptocurrency assets.
This fiscal classification adjustment will have a profound impact: it is expected to reduce total assets by $8.1 million, $92.2 million, $57.1 million, and $49 million on September 30, 2025, March 31, 2026, and June 30, 2026, respectively. Previously, Datavault viewed these Bitcoin balances as funds that could be used to maintain business operations, but now the situation must be re-evaluated to acknowledge that this part of the asset is essentially uncontrollable.
As of Wednesday's Asian session, CoinDesk contacted Biconomy about withdrawal requests and Bitcoin issues supporting Datavault accounts, but no response has been received. This is another example of a trust crisis caused by a disconnect between private agreements and on-chain authorization following similar off-chain asset disputes among many crypto custodians, highlighting the huge compliance and enforcement risks under the non-transparent asset transfer model.