Datavault AI Writes Down Bitcoin Treasury by $92M After Loss of Exchange Access
Datavault AI said it cannot access Bitcoin held on the Biconomy exchange since June, prompting a $92.2 million accounting correction and restatement of four financial reports. The company's stock fell 50% following the disclosure.
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The Access Loss and Write-Down
Datavault AI announced it has been unable to withdraw Bitcoin from Biconomy since June. The company said the access loss will require an accounting correction that reduces reported assets by $92.2 million as of the end of 2025. The disclosure triggered a 50% decline in the company's stock price.
Financial Restatement Tied to Scilex Deal
The accounting correction forces Datavault AI to restate four financial reports previously filed in connection with a $150 million Scilex deal. The company did not disclose details of the underlying cause of the Biconomy access failure or whether recovery efforts are underway. The timing of the June access loss and the reason Bitcoin became inaccessible remain unclear from available statements.
Why It Matters
For Traders
Datavault AI's 50% stock decline reflects immediate market repricing of the firm's treasury holdings and asset base; traders holding the stock face volatility risk pending further disclosure.
For Investors
The restatement of four prior financial reports and multi-million-dollar asset write-down raise questions about internal controls and the reliability of disclosures tied to material transactions.
For Builders
The incident underscores custody and withdrawal risks on centralized venues; protocols integrating with exchange treasuries should document fallback liquidity plans.
This article is for information only and is not financial advice. Read the full disclaimer.
