Bitcoin treasury firm Datavault AI has disclosed that it has been unable to withdraw BTC held by crypto change Biconomy since requesting a switch in June.
The revelation noticed the corporate’s shares fall practically 50% within the newest buying and selling session.
Biconomy Withdrawal Failure Sends DVLT Shares Decrease
In accordance with a Type 8-Okay that Datavault filed on October 26 with the SEC, it obtained $150 million in Bitcoin from Scilex on September 25, 2025, as fee for an fairness buy settlement, with every unit valued at about $112,915 on the time, bringing the overall variety of BTC used within the transaction to round 1,328.
Nevertheless, the precise quantity despatched to Datavault’s Biconomy account was 1,309.04 BTC, after 19.39 BTC was subtracted to account for money advances Scilex had made to the corporate. It then transferred 491.431 BTC again to Scilex in September 2025 and January 2026 in change for about $40.5 million in money, with the remaining cryptocurrency saved within the digital pockets maintained at Biconomy.
Apparently, Datavault says all of the transactions have been made off-chain, which means that the belongings have been recorded on the change’s books, not on the Bitcoin community. It later requested a withdrawal of the Bitcoin to an exterior account in June however had not accomplished it by the point of the 8-Okay submitting, with no purpose given for the delay.
“Subsequent to the issuance of the Affected Monetary Statements and following a evaluation of the transaction, the Firm decided that the Bitcoin related to the Scilex Fairness Buy didn’t meet the necessities for recognition as a digital asset of the Firm,” the submitting additional famous.
Because of this, Datavault administration is reassessing whether or not it might keep in enterprise, provided that BTC had counted as a supply of money and the corporate just isn’t positive it might gather from Scilex.
Response out there to the disclosure was brutal, with Google Finance information displaying the agency’s DVLT shares closing at $0.067 on October 28, down 49.55%, after buying and selling as little as $0.060 throughout the session. On the time of writing, its market cap stood at roughly $65 million, with the inventory transferring as much as $0.071 in after-hours exercise.
Bitcoin Treasury Corporations Carry Danger
As CryptoPotato reported beforehand, Smarter Internet Firm CEO Andrew Webley had warned that treasury firms can expose shareholders to Bitcoin’s volatility and sometimes rely on managers whose financing selections might damage them. The instant query going through Datavault is whether or not and when it might entry the BTC held with its custodian.
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