Datavault AI Plunges 50% After Unable To Access Biconomy BTC

The company stated that this accounting adjustment will reduce reported assets by $92.2 million by the close of 2025, since the Bitcoin credited via Scilex Holding Company’s $150 million investment could not be withdrawn.

The issue stems from a September 2025 arrangement where Scilex agreed to purchase $150 million worth of Datavault shares and warrants using Bitcoin. Scilex credited 1,309.04 BTC to Datavault’s Biconomy account through off-chain transfers.

Datavault subsequently sold 491.4 BTC back to Scilex for approximately $40.5 million in cash, but the transfer failed when it requested a withdrawal to an external account in June, according to the company's Monday filing.

The firm concluded that the Bitcoin never qualified as a digital asset; instead, it must be booked as a subscription receivable, which reduces stockholders' equity. This correction is projected to cut assets by $49 million as of June 2026.

Because Datavault previously counted those Bitcoin balances as operational funding, management is now re-evaluating the company’s going-concern status. The filing noted that collecting what Scilex owes remains uncertain.

In related activity, Scilex’s June report showed it sold $200 million of shares in its Semnur subsidiary to Biconomy for Bitcoin, then used $150 million of that to acquire Datavault securities.

Furthermore, Scilex entered into a binding term sheet in June 2026 to purchase 837 BTC held in Datavault’s Biconomy wallet for $50 million.

Why it matters

This incident highlights significant operational and accounting risks within crypto-related entities. Readers should watch how Datavault addresses its going-concern status and the implications of locked digital assets.