The sharp decline in Datavault AI’s share price has brought renewed attention to the risks associated with corporate cryptocurrency holdings. The company disclosed that it had been unable to withdraw Bitcoin held on crypto exchange Biconomy, prompting a financial restatement and a nearly 50% drop in its stock price.
The case highlights the operational and accounting risks that can arise when cryptocurrency holdings become part of a corporate treasury strategy.
As more companies incorporate Bitcoin into their treasury strategies, the incident highlights the importance of custody, transparency, and asset accessibility in assessing financial strength.
Questions Over Access to Bitcoin Holdings
According to the filing, the issue originated from a September 2025 agreement in which Scilex Holding Company agreed to purchase $150 million of Datavault shares and warrants using Bitcoin. As part of the transaction, 1,309.04 BTC was credited to Datavault’s account at Biconomy through off-chain transfers within the exchange system.
Concerns surfaced when Datavault AI attempted to transfer the Bitcoin to an external account in June 2026. The withdrawal request was not completed and remained unresolved at the time of the filing.
The unresolved withdrawal issue immediately drew market attention because the value of a digital asset depends not only on recorded ownership but also on the holder’s ability to access and transfer it when needed.
Accounting Correction Alters Balance Sheet
The withdrawal issue led the company to reassess how the transaction should be reflected in its financial statements. Datavault stated that the Bitcoin associated with the investment should have been recorded as an amount owed by Scilex Holding Company rather than as cryptocurrency assets available to support operations.
As a result, the company expects to reduce previously reported assets by approximately $92.2 million at the end of 2025 and by $49 million as of June 2026.
The revision significantly changed Datavault AI’s reported financial position and contributed to the sharp decline in its shares.
Lessons for Corporate Bitcoin Holders
The incident shows how digital-asset treasury strategies can expose companies to risks beyond cryptocurrency price movements. Custody arrangements, counterparty exposure, and asset verification can have a direct impact on financial reporting and investor confidence.
As more public companies add Bitcoin to their balance sheets, investors are paying closer attention to how those assets are held and whether they can be independently verified and accessed.
The events surrounding Datavault AI serve as a reminder that in corporate cryptocurrency management, control and accessibility can be just as important as ownership itself.
