Summary
- Empery Digital sold 1,400 Bitcoin for about $87.1 million since May 7, reducing its BTC holdings by nearly 50%.
- The funds were utilized to pay off $10 million in debt, support a property purchase, and address legal fees from ongoing litigation with shareholders.
- As of July 10, the firm retains 1,514 BTC and approximately $73.9 million in cash.
Empery Digital Inc., a publicly traded entity, has divested nearly half of its Bitcoin treasury since early May. The proceeds are being used to settle debts, fund an AI-focused real estate acquisition, and cover legal expenses related to a shareholder lawsuit, as detailed in a recent SEC filing.
The company reported that it sold 1,400 BTC at an average price of approximately $62,200 per coin, resulting in gross proceeds of about $87.1 million. Of this amount, $10 million was allocated to clear outstanding debt on July 7, while the rest is reserved for a previously announced property acquisition—pending the finalization of a purchase agreement—and legal costs associated with the shareholder litigation indicated in the firm’s latest quarterly report, in addition to general operational expenses.
The $65 million property investment, publicly disclosed on June 30, aims for a “25% ownership [stake] in a private entity acquiring a strategically located facility in the Midwest to transform it into a cutting-edge AI data center.”
As of Thursday, Empery Digital held 1,514 BTC, valued at nearly $96.5 million, alongside roughly $73.9 million in cash, with $45 million still owed on its debt facility, according to the filing.
Decrypt attempted to contact Empery Digital for insights on the sale and its implications for the company's future treasury strategy, but did not receive a prompt reply.
This disclosure illustrates how corporate Bitcoin holders are increasingly viewing their crypto reserves as a source of liquidity, opting to sell portions of their holdings to fulfill traditional financial obligations rather than solely keeping the asset as a long-term investment.
A notable instance is Bitcoin powerhouse Strategy’s recent sell-offs from its $54 billion BTC reserve, which were executed to support dividend payments for preferred shares, addressing concerns regarding its financial commitments. These worries have negatively impacted the value of Strategy’s MSTR common shares and STRC preferred shares recently.
The litigation referenced in the SEC filing was previously mentioned in Empery Digital's quarterly report for the period ending March 31, though specific legal costs were not detailed in this week’s filing. There is also no timeline provided for completing the property acquisition or resolving the ongoing litigation.
Empery Digital (EMPD) shares rose approximately 2% on Friday, according to data from Yahoo Finance, trading at $3.87. The stock has gained over 14% in the past month, yet it remains down around 15% year-to-date.