Datavault AI’s shares tumbled after it disclosed it cannot withdraw Bitcoin held at crypto exchange Biconomy since June 2026, signaling a liquidity and custody crisis.

The company warned that four prior financial reports may be unreliable due to the unresolved Bitcoin issue, prompting restatements.

The withdrawal problem began when Datavault attempted an external transfer of BTC in June, and the transfer remains incomplete as of the filing date.

Management is reassessing the company’s ability to continue operating given uncertainty around collectibility of amounts owed by Scilex.

Analysts maintain a Moderate Buy stance on DVLT, with a 12-month target around $2, signaling potential upside despite the crisis.

The filing requires restatements for Q3 2025, full-year 2025, and the first two quarters of 2026, raising concerns about cash runway.

Related institutional moves noted: Standard Chartered moves to consolidate institutional crypto custody with Zodia Acquisition.

Investors should assess trust in custody arrangements and consider that publishing reserves and wallet addresses would improve transparency, while Datavault AI and Biconomy have not publicly addressed the withdrawal issue.

Context shows other firms pursuing Bitcoin treasuries, with Strategy (formerly MicroStrategy) as a notable example in the space.

Datavault retains a legal claim against Scilex while seeking to resolve accounting issues.

Regulatory filing underscores broader impacts on assets, liquidity, and financial reporting for Datavault AI.

Datavault must correct four financial statements and is re-evaluating whether it has enough resources to continue as a going concern.