diff --git a/src/status_im/chat/models.cljs b/src/status_im/chat/models.cljs
index ed4c4ec7fa..4c0218dc39 100644
--- a/src/status_im/chat/models.cljs
+++ b/src/status_im/chat/models.cljs
@@ -434,10 +434,12 @@
 
 (fx/defn decrease-unviewed-count
   {:events [:chat/decrease-unviewed-count]}
-  [{:keys [db]} chat-id unseen-messages]
-  {:db (update-in db [:chats chat-id :unviewed-messages-count]
-                  (fn [count]
-                    ;; There might be some other requests being fired,
-                    ;; so we need to make sure the count has not been set to
-                    ;; 0 in the meantime
-                    (max (- count unseen-messages) 0)))})
+  [{:keys [db]} chat-id {:keys [count countWithMentions]}]
+  {:db (-> db
+           ;; There might be some other requests being fired,
+           ;; so we need to make sure the count has not been set to
+           ;; 0 in the meantime
+           (update-in [:chats chat-id :unviewed-messages-count]
+                      #(max (- % count) 0))
+           (update-in [:chats chat-id :unviewed-mentions-count]
+                      #(max (- % countWithMentions) 0)))})
diff --git a/status-go-version.json b/status-go-version.json
index 38ea548f49..334804e700 100644
--- a/status-go-version.json
+++ b/status-go-version.json
@@ -2,7 +2,7 @@
     "_comment": "DO NOT EDIT THIS FILE BY HAND. USE 'scripts/update-status-go.sh <tag>' instead",
     "owner": "status-im",
     "repo": "status-go",
-    "version": "v0.84.1",
-    "commit-sha1": "83394e0ed17265cb20ab3e56fe3de13ca4057267",
-    "src-sha256": "0xhg4n5i8ifv2z3vydi0878n6mv53cajmsr54fpaxqr4lvhrkzza"
+    "version": "v0.85.0",
+    "commit-sha1": "0c0e02e93af31207fedb04f98ae6161cd4bcb3df",
+    "src-sha256": "1dzx8f0gjn5kbwkrfidnfacvahw79p85ampmps57bp0yszvq4rnl"
 }