Key facts
- Empery Digital sold 1,400 Bitcoin since May 7 at an average price of $62,200 per coin.
- The sales generated approximately $87.1 million in gross proceeds.
- The company used $10 million to pay down debt.
- Proceeds will also fund a property acquisition for an AI data center and cover legal costs.
- As of July 10, Empery Digital holds 1,514 Bitcoin and $73.9 million in cash.
Empery Digital, a publicly traded Bitcoin treasury firm, has significantly reduced its cryptocurrency holdings by selling 1,400 Bitcoin since May 7, generating approximately $87.1 million. The firm utilized a portion of these proceeds to repay $10 million in debt and is allocating the remainder towards a pending acquisition of a 25% stake in an entity acquiring a Midwest facility for conversion into an AI data center. Additionally, the funds will cover legal expenses related to ongoing stockholder litigation and general operating costs.
As of July 10, Empery Digital's treasury consists of 1,514 Bitcoin, valued at nearly $96.5 million, and approximately $73.9 million in cash. The company still has $45 million outstanding on its debt facility. This move illustrates a trend where corporate Bitcoin holders are increasingly using their crypto reserves as a liquidity source to meet financial obligations, rather than solely for long-term investment.
The stockholder litigation was previously detailed in Empery Digital's quarterly report for the period ending March 31. The company has not provided a specific timeline for the completion of the property acquisition or the resolution of the legal proceedings. Empery Digital's stock (EMPD) saw a modest increase of about 2% on Friday, trading at $3.87, with shares up over 14% in the past month but down approximately 15% year-to-date.