Datavault AI's Bitcoin treasury has encountered a significant problem: the company has been unable to withdraw Bitcoin from the Biconomy exchange since June, according to a recent filing. The firm also disclosed that it would need to restate its financial results.
Datavault AI originally received 1,309.04 BTC through a $150 million deal with Scilex in 2025. It later sold 491.431 BTC back to Scilex for approximately $40.5 million, leaving about 817.61 BTC on the exchange. That remaining stash is still held on Biconomy but is inaccessible for withdrawal. At the current spot price, it would be worth over $65 million.
The market reaction was swift: Datavault AI shares plunged more than 50% to just above $0.06, putting its Bitcoin treasury strategy under heavy criticism.
Financial impact extends beyond locked Bitcoin
The company expects to reduce reported assets by $92.2 million for December 2025 and $49 million for June 2026 as it corrects its accounting records. Datavault is also reconsidering whether it can continue operating as previously planned, because it had initially included Bitcoin as a key liquidity driver to support its business.
The broader crypto market has not reacted much so far. However, the 50% drop in the company's shares, combined with its financial issues and the 817 BTC still locked up, suggests Datavault AI could face financial difficulties. If it cannot recover the funds or find more liquid assets, it could face insolvency, leaving shareholders exposed to further losses.
Concerns for Bitcoin holders
The primary concern for Bitcoin holders is the 817 BTC trapped on Biconomy, worth more than $65 million at $80,000 per BTC. The situation raises questions about how treasuries hold their Bitcoin and whether they will be able to sell or move their Bitcoin when required if the issue takes too long to resolve.
The immediate impact on BTC's price may remain limited, as the locked coins are a small fraction of Bitcoin's circulating supply. That said, the larger issue is Datavault AI's financial position and how it affects confidence that the coins can ever be recouped. The company is under financial pressure, and there is a risk of insolvency.
Datavault has yet to explain why the withdrawal issue arose, and it remains unclear whether there is a dispute or an operational problem. There is no evidence that the coins are missing or lost. The key concern is that over 817 BTC remain inaccessible, with the reason still unclear.
