Bitcoin treasury company Datavault AI has revealed that it has been unable to withdraw BTC held by crypto exchange Biconomy since its transfer request in June.
This revelation saw the company’s shares fall by almost 50% in the last trading session.
Failed Biconomy withdrawal 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 a stock purchase agreement, with each unit then valued at approximately $112,915, bringing the total number of BTC used in the transaction to approximately 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. He then transferred 491,431 BTC to Scilex in September 2025 and January 2026 in exchange for approximately $40.5 million in cash, with the remaining cryptocurrency held in the digital wallet maintained at Biconomy.
Interestingly, Datavault indicates that all transactions were made off-chain, meaning the assets were recorded on the exchange’s books and not on the Bitcoin network. He then 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.
“Following the release of the relevant financial statements and following a review of the transaction, the Company determined that the Bitcoin associated with the purchase of Scilex stock did not meet the requirements for recognition as a digital asset of the Company,” the filing further states.
As a result, Datavault management is reassessing whether it can remain in business, given that BTC was seen as a source of liquidity and the company is unsure if it can collect from Scilex.
Market reaction to this disclosure was brutal, with Google Finance data showing that the company’s DVLT shares closed 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 capitalization stood at around $65 million, with the stock trading as high as $0.071 in after-hours trading.
Bitcoin Cash Companies Carry Risks
As CryptoPotato As previously reported, Andrew Webley, CEO of Smarter Web Company, had warned that treasury companies can expose shareholders to the volatility of Bitcoin and are often dependent on executives whose financing choices could harm them. The immediate question facing Datavault is if and when it will be able to access the BTC held by its custodian.
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