Datavault AI (DVLT) shares fell almost 50% on Tuesday after the company revealed that it had been unable to withdraw Bitcoin stored on cryptocurrency exchange Biconomy since June. The disclosure also triggered the need to correct its financial statements, including a substantial reduction in reported assets.

The Oregon-based company’s stock ended the session at $0.067, down 49.55%, with trading volume reaching around 244 million shares.

The problem stems from a September 2025 agreement with Scilex Holding Company, which agreed to acquire $150 million in Datavault shares and warrants using Bitcoin.

As part of the transaction, Scilex credited 1,309.04 BTC to Datavault’s Biconomy account through off-chain transfers. These transfers changed balances within the exchange rather than recording transactions directly on Bitcoin’s blockchain. Datavault later sold 491.4 BTC back to Scilex for approximately $40.5 million in cash.

Datavault said it requested a withdrawal to an external account in June, but the transfer was never completed. The issue remained unresolved when the company filed its disclosure on Monday.

Scilex’s June financial report also outlined Biconomy’s role in the arrangement. It stated that Scilex sold $200 million worth of shares in its subsidiary Semnur to Biconomy in exchange for Bitcoin, before using $150 million to purchase Datavault securities.

Accounting correction reduces Datavault’s reported assets

Datavault now says the Bitcoin balances received through Scilex’s investment should have been classified as an amount owed by Scilex for the shares, rather than being recorded as cryptocurrency assets held by Datavault.

Under the revised accounting approach, the amount would reduce shareholders’ equity instead of being included in the company’s digital asset holdings.

The correction is expected to decrease reported assets by $92.2 million at the end of 2025 and $49 million as of June 2026.

Datavault had previously treated the Bitcoin balances as funds available to finance its operations. The company must now reconsider that assessment in light of the unresolved withdrawal and the revised accounting classification.

CoinDesk requested comment from Biconomy about the withdrawal issue and the Bitcoin associated with Datavault’s account. The exchange had not responded by Wednesday afternoon in Asia.