Datavault AI stock plunges after Bitcoin withdrawal issue

6.6 Security

Oct 28, 2026

Datavault AI shares plunged 50% after failing to withdraw Bitcoin from Biconomy for four months, forcing asset restatements and raising concerns over crypto exchange risks.

Datavault AI shares plunged nearly 50% after the company revealed it had been unable to withdraw its Bitcoin from the Biconomy exchange for about four months. The problem began after a $150 million equity deal with Scilex Holding Company in September 2025, which resulted in Datavault receiving approximately 1,309 BTC credited to its Biconomy account. While a portion of the Bitcoin was sold back to Scilex for $40.5 million in cash, the remaining amount remains inaccessible, with a withdrawal request filed in June still unanswered. As a result, Datavault announced it would restate four financial periods, reducing reported assets by $92.2 million at the end of 2025 and $49 million as of June 2026. The company’s stock closed at $0.067, down nearly 50%, with trading volume surging to 244 million shares. Neither Datavault nor Biconomy has provided an explanation for the withdrawal issue, raising concerns about Datavault’s liquidity, accounting practices, and the risks of holding crypto assets on exchanges.