Datavault AI Shares Plunge 50% After Bitcoin Withdrawal Stalls

Datavault AI, a Bitcoin treasury company, has disclosed that it has been unable to withdraw BTC held at crypto exchange Biconomy since requesting a transfer in June. The disclosure sent its shares down nearly 50% in the latest session. In a Form 8-K filed with the SEC on Oct. 26, Datavault said it received $150 million in Bitcoin from Scilex on Sept. 25, 2025, as payment under an equity purchase agreement, with each unit valued at about $112,915 at the time, bringing the total BTC used in the transaction to around 1,328. The actual amount sent to the Biconomy account held by Datavault AI 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. The remaining cryptocurrency stayed in the digital wallet maintained at Biconomy. Datavault said all transactions were made offchain, meaning the assets were recorded on the exchange books rather than 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, and no reason was given for the delay. In the filing, Datavault said that after issuing the affected financial statements and reviewing the transaction, it determined the Bitcoin tied to the Scilex equity purchase did not meet the requirements for recognition as a digital asset of the company. As a result, management is reassessing whether the company can remain a going concern, because BTC had been counted as a source of cash and Datavault is not certain it can collect from Scilex. Market reaction was severe. Google Finance data showed DVLT shares closed at $0.067 on Oct. 28, down 49.55%, after trading as low as $0.060 during the session. At the time of writing, market capitalization stood at about $65 million, and the stock moved up to $0.071 in after-hours activity. CryptoPotato reported previously that Smarter Web Company CEO Andrew Webley warned treasury companies can expose shareholders to Bitcoin volatility and often depend on managers whose financing choices could hurt them. The immediate question for Datavault is whether, and when, it can access the BTC held with its custodian. The report first appeared on CryptoPotato.