In brief
- Since May 7, Empery Digital sold 1,400 Bitcoin for about $87.1 million, slashing its BTC treasury by nearly half.
- The firm repaid $10 million in debt, funded a pending property acquisition, and covered legal costs from ongoing stockholder litigation.
- As of July 10, the company holds 1,514 BTC and roughly $73.9 million in cash.
Publicly traded Empery Digital Inc. has sold nearly half its Bitcoin treasury since early May, using the proceeds to pay down debt, prepare for an AI-related real estate acquisition, and cover mounting legal bills tied to a shareholder lawsuit, according to an SEC filing this week.
The company disclosed it sold 1,400 BTC since May 7 at an average price of about $62,200 per coin, generating roughly $87.1 million in gross proceeds. Of that total, $10 million went toward retiring outstanding debt on July 7. The remainder is earmarked for a previously announced property acquisition—pending completion of a purchase and sale agreement—as well as legal expenses stemming from stockholder litigation disclosed in the company's most recent quarterly report, along with general operating costs.
The $65 million property deal, announced on June 30, is for a “25% ownership [stake] into a private entity that is acquiring a strategically located Midwest facility to be converted into a state-of-the-art AI data center.”
As of Thursday, Empery Digital held 1,514 BTC—currently valued at nearly $96.5 million—and approximately $73.9 million in cash, with $45 million still outstanding on its debt facility, the filing shows.
Decrypt reached out to Empery Digital for comment regarding the sale and whether it impacts the firm’s treasury strategy going forward, but did not immediately receive a response.
The disclosure offers a window into how corporate holders of Bitcoin are increasingly treating their crypto reserves as a liquidity source, selling down positions to meet conventional financial obligations rather than holding the asset purely as a long-term investment.
The most prominent example is Bitcoin giant Strategy’s recent sales from its $54 billion BTC stash, which have been done to fuel dividend payments for its preferred share offerings in an effort to cool concerns around its ability to meet its financial commitments. Such fears had helped tank the price of Strategy’s MSTR common shares and its STRC preferred shares in recent weeks.
The stockholder litigation referenced in the filing was previously outlined in Empery Digital's quarterly report for the period ending March 31, though the company did not detail the specific legal costs in this week's disclosure. The filing does not specify a timeline for completing the property acquisition or resolving the pending litigation.
Empery Digital (EMPD) stock has ticked up about 2% on the day so far Friday, per data from Yahoo Finance, recently trading at $3.87. Shares are up more than 14% in the last month, but down about 15% so far this year.