Bitcoin treasury company Datavault AI has disclosed that it has been unable to withdraw BTC held by crypto exchange Biconomy since requesting a transfer in June.
The revelation saw the company’s shares fall nearly 50% in the latest trading session.
Biconomy Withdrawal Failure Sends DVLT Shares Lower
According to a Form 8-K that Datavault filed on October 26 with the SEC, it received $150 million in Bitcoin from Scilex on September 25, 2025, as payment for an equity purchase agreement, with each unit valued at about $112,915 at the time, bringing the total number of BTC used in the transaction to around 1,328.
However, the actual number sent to Datavault’s Biconomy account was 1,309.04 BTC, after 19.39 BTC was subtracted to account for cash advances Scilex had made to the company. It then transferred 491.431 BTC back to Scilex in September 2025 and January 2026 in exchange for about $40.5 million in cash, with the remaining cryptocurrency kept in the digital wallet maintained at Biconomy.
Interestingly, Datavault says all the transactions were made off-chain, meaning that the assets were recorded on the exchange’s books, not on the Bitcoin network. It later requested a withdrawal of the Bitcoin to an external account in June but had not completed it by the time of the 8-K filing, with no reason given for the delay.
“Subsequent to the issuance of the Affected Financial Statements and following a review of the transaction, the Company determined that the Bitcoin associated with the Scilex Equity Purchase did not meet the requirements for recognition as a digital asset of the Company,” the filing further noted.
As a result, Datavault management is reassessing whether it can stay in business, given that BTC had counted as a source of cash and the company is not sure it can collect from Scilex.
Reaction in the market to the disclosure was brutal, with Google Finance data showing the firm’s DVLT shares closing at $0.067 on October 28, down 49.55%, after trading as low as $0.060 during the session. At the time of writing, its market cap stood at approximately $65 million, with the stock moving up to $0.071 in after-hours activity.
Bitcoin Treasury Firms Carry Risk
As CryptoPotato reported previously, Smarter Web Company CEO Andrew Webley had warned that treasury companies can expose shareholders to Bitcoin’s volatility and often depend on managers whose financing choices could hurt them. The immediate question facing Datavault is whether and when it can access the BTC held with its custodian.
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