Datavault AI: Bitcoin Withdrawal Trouble Leads to 50% Stock Crash
Shares of Bitcoin treasury company Datavault AI (DVLT) have crashed nearly 50% after the company revealed it has been unable to withdraw its Bitcoin from the Biconomy cryptocurrency exchange for approximately four months. This issue follows a previous $150 million investment in Bitcoin-denominated assets and raises questions about accounting and liquidity.
Datavault AI (DVLT) shares crashed by nearly 50%.
Company unable to withdraw Bitcoin from Biconomy for four months.
Issue follows $150M Bitcoin investment in Sep 2025.
Financial statements from 2025 and 2026 deemed unreliable.
Story
Shares of Bitcoin treasury company Datavault AI (DVLT) have crashed nearly 50% after the company revealed that it has been unable to withdraw its Bitcoin from the cryptocurrency exchange Biconomy for approximately four months. On October 27, DVLT shares finished the day's trading session at a value of just $0.067 per share, losing 49.55% in a single day, with a surge in trading volume. According to Datavault AI's filing on October 26 with the U.S. Securities and Exchange Commission (SEC), the company applied for the withdrawal of its Bitcoin from a digital wallet held by Biconomy Pte. Ltd. to another account in June 2026. However, as of October 26, it had failed to complete this withdrawal. The firm did not elaborate on the reasons for the failure or the amount of Bitcoin involved. This issue with the Bitcoin withdrawal follows a major investment deal for Bitcoin-denominat ed investments in September 2025 between Datavault AI and Scilex Holding Company, valued at around 1,328.43 BTC. Datavault AI also disclosed that its previously issued financial statements for Q3 2025, full year 2025, and Q1 and Q2 2026 must not be relied upon, as the Bitcoin should not be classified as a digital asset on the balance sheet.
Issue context
The crypto market presents a mixed picture on October 28: Large Bitcoin transactions on Coinbase Prime suggest potential selling intent or institutional rebalancing, even as spot Bitcoin ETFs continue to see inflows. Simultaneously, markets eagerly await the U.S. Federal Reserve's interest rate decision and subsequent press conference, which could significantly influence sentiment for risk assets. Meanwhile, Ethereum faces further delays with its 'Glamsterdam' update, potentially impacting its development roadmap. These developments underscore the multifaceted factors driving the digital asset market's dynamics.
Current market conditions are shaped by a mix of on-chain movements, macroeconomic uncertainties, and specific network developments. Note that large deposits to exchanges like Coinbase Prime can influence liquidity, while the Fed's decision guides overall risk appetite. Bitcoin's efficiency gains and Ethereum's challenges illustrate the networks' differing development stages. Miner diversification strategies and Ripple's expansion into traditional finance are long-term relevant. Be aware that technical issues and custody risks, as seen with Datavault AI, can have unexpected impacts on individual assets. Your risk assessment should consider these multifaceted factors.
Market pulse
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This story is part of the Biturai Market Brief and is for informational purposes only. No investment advice.