Shares of Datavault AI (DVLT) experienced a dramatic drop of nearly 50% on Tuesday, closing at $0.067 following the company’s disclosure of complications with bitcoin withdrawals from the Biconomy exchange. The stock’s decline was marked by significant trading activity, with approximately 244 million shares exchanged.

Background of the Situation

The turmoil stems from an agreement established in September 2025 between Datavault and Scilex Holding Company. Under this agreement, Scilex committed to purchasing $150 million in Datavault shares and warrants, using bitcoin as the medium of exchange.

As part of this transaction, Scilex transferred a total of 1,309.04 BTC to Datavault’s account at Biconomy. These transfers occurred off-chain, meaning that the balance changes were logged within the exchange rather than recorded on the Bitcoin blockchain. Subsequently, Datavault sold 491.4 BTC back to Scilex, securing around $40.5 million in cash.

Withdrawal Complications

Despite this initial success, issues arose when Datavault attempted to execute a withdrawal to an external account in June. The company revealed that this withdrawal request has since remained unresolved, affecting its current operations and financial disclosures.

Involvement of Biconomy

Biconomy’s role extends beyond facilitating bitcoin transfers. In the June financial disclosure from Scilex, it was revealed that Scilex had previously sold $200 million in shares of its subsidiary Semnur to Biconomy in exchange for bitcoin. The proceeds from this transaction were then utilized to acquire Datavault securities amounting to $150 million.

Market Response

The combination of these financial complications and the necessity for Datavault to restate its financial results has significantly impacted investor confidence. As the situation unfolds, market observers are keenly monitoring Datavault’s next steps.