817 BTC locked, shares crash 50%: Can Datavault AI recover its Bitcoin treasury?

Datavault AI’s Bitcoin [BTC] treasury has hit a major setback. 

A recent filing has revealed that the Bitcoin treasury has been unable to withdraw Bitcoin from the Biconomy exchange since June and would need to restate its financial results. For context, Datavault AI initially received 1,309.04 BTC through its $150 million deal with Scilex in 2025. It later sold 491.431 BTC back to Scilex for around $40.5 million, leaving approximately 817.61 BTC on the exchange.

Technically, that leaves Datavault AI with approximately 817.61 BTC still held on Biconomy but inaccessible for withdrawal. At the current spot price, that stash would be worth over $65 million. The market reaction? Panic selling. The Datavault AI shares have plunged over 50% to just above $0.06, putting its Bitcoin treasury strategy under heavy criticism.

The key takeaway? Datavault AI’s financial impact goes beyond its inaccessible Bitcoin. 

Notably, as the company reassesses its financial statements, it expects to slash reported assets by $92.2 million for December 2025 and $49 million for June 2026. 

Moreover, the company is now considering its position on whether it can continue operating as previously planned because Datavault had initially included Bitcoin as a key liquidity driver to support its business. 

Naturally, the question becomes: Could this remain an isolated treasury issue, or will it trigger broader concerns across the Bitcoin treasury market?

Bitcoin Treasury’s $65 million BTC lockup raises serious concerns

For now, though, the broader crypto market hasn’t reacted much.

However, the 50% drop of the Bitcoin treasury, along with financial issues plus the fact they still have over 817 BTC locked up, means that the company could be facing financial issues. If they are unable to get their money back and find more liquid assets, then they could face insolvency, which could leave shareholders exposed to further losses.

The primary concern for Bitcoin holders is the 817 BTC trapped on Biconomy at this time, which is worth more than $65 million at $80k per BTC. This could cause concern about how treasuries hold their Bitcoin and whether they will be able to sell/move their Bitcoin when required if the situation takes too long to resolve.

However, the immediate impact on BTC’s price may remain limited.

The logic is simple: the locked coins are a small fraction of Bitcoin’s circulating supply. That said, the larger issue is the financial position at Datavault AI and how it affects confidence that the coins can ever be recouped. The company is under financial pressure, and there is a risk of them becoming insolvent.

More importantly, Datavault has yet to explain why the withdrawal issue has arisen. Moreover, it remains unclear if there is a dispute or an operational problem. So, there’s no evidence that they are missing or lost. The key concern is that over 817 BTC remain inaccessible, with the reason still unclear.

Final Summary

• Datavault AI cannot access 817 BTC worth over $65 million, while its shares have crashed over 50%.

• Bitcoin’s price impact remains limited, but the incident raises concerns about corporate BTC holdings and insolvency risks.