Key facts
- Empery Digital invested $20 million in Cardinal Data Power, securing an 8% stake.
- The investment is part of Cardinal Data Power's $70 million Series A financing round.
- The capital will fund a large-scale data center campus in West Texas, expected to be operational by 2027.
- Empery Digital recently sold about 1,400 Bitcoin for $87.1 million to reallocate funds.
- The company has pivoted from a Bitcoin treasury strategy to focus on AI infrastructure.
Empery Digital, a firm that previously focused on Bitcoin treasury strategies, has invested $20 million in Cardinal Data Power, a developer of data centers for artificial intelligence and high-performance computing. This investment marks a significant pivot for Empery, as it moves capital away from its Bitcoin holdings to fund AI infrastructure.
The investment in Cardinal Data Power was part of the developer's approximately $70 million Series A financing round. The funds will be used to develop a substantial data center campus in West Texas, with initial power delivery expected in 2027 and expansion plans reaching over 5 gigawatts by 2029. Cardinal Data Power specializes in integrating power generation, natural gas supply, and electrical infrastructure to expedite the creation of large-scale computing sites.
Empery Digital's strategic shift is underscored by its recent sale of approximately 1,400 Bitcoin over two months, generating about $87.1 million. These proceeds were earmarked for AI infrastructure investments and debt repayment, reducing Empery's Bitcoin holdings to 1,514 BTC. This move comes amid pressure from shareholder Tice P. Brown, who advocated for abandoning the Bitcoin treasury strategy and called for leadership changes.
The broader landscape of Bitcoin treasury companies is also evolving. Some firms are increasing their Bitcoin accumulation, while others, like Satsuma Technology, have opted to unwind their operations and return capital to investors. Meanwhile, a proposed merger between Twenty One Capital, Strike, and Elektron Energy was called off, though Twenty One remains a significant corporate Bitcoin holder. Other entrepreneurs, such as Lyn Alden, are exploring new models, like Orange Juice HODLINGS, which combines business ownership with Bitcoin as a treasury reserve asset.