Key facts
- Empery Digital sold 1,400 Bitcoin at an average of $62,200 per coin.
- The sale generated approximately $87.1 million.
- Funds were used for an AI data center project and debt repayment.
- Empery's Bitcoin holdings decreased by 48% to 1,514 coins.
- A significant shareholder had previously called for the company to exit its Bitcoin strategy.
Empery Digital's stock saw a notable increase on Friday following the company's announcement that it had sold approximately half of its Bitcoin holdings. The sales, totaling 1,400 Bitcoin at an average price of $62,200, generated roughly $87.1 million. These funds are earmarked for two primary purposes: investing in a 25% stake in an AI data center project through a venture affiliated with Hunt Properties, and repaying $10 million in outstanding debt.
The company's shares, which had previously operated as an electric powersports vehicle manufacturer, popped as much as 4.2% to $3.95 in early trading. Although the stock later retraced to close up 1.58% for the day at $3.86, the initial positive reaction suggests investors approved of the strategic shift. This move comes at a time when confidence in corporate Bitcoin treasury strategies is reportedly waning, with capital increasingly flowing towards artificial intelligence initiatives.
Empery's decision to reduce its Bitcoin holdings follows months of pressure from Tice P. Brown, a significant shareholder who owns nearly 10% of the company. Brown had publicly urged Empery to abandon its Bitcoin treasury strategy and had called for the resignation of the CEO and the entire board. Empery had adopted its Bitcoin-centric treasury strategy in mid-2025, around the time Bitcoin was approaching its all-time high.
The recent sales have reduced Empery's Bitcoin holdings by 48%, leaving them with 1,514 Bitcoin, currently valued at approximately $97 million. This is a significant reduction from its peak holdings of 4,081 Bitcoin, some of which were already offloaded in March and April.
This strategic sale by Empery mirrors a similar move by Strategy, another major corporate Bitcoin holder. Strategy recently sold 3,588 Bitcoin, valued at $216 million, to cover dividend payments for its perpetual preferred stock offering. This decision by Strategy came after its preferred stock fell below its $100 par value, raising concerns about the sustainability of its dividend model.