Empery Digital, a publicly traded blockchain investment company, sold approximately half of its Bitcoin holdings since May, according to its latest filing with the US Securities and Exchange Commission.
Details on Bitcoin Sales
Since May 7, Empery Digital sold 1,400 Bitcoin at an average price of $62,200 per coin. The sales generated gross proceeds of about $87.1 million and reduced the company’s Bitcoin reserves by nearly 50%.
The company used $10 million from these proceeds to pay down outstanding debt on July 7. The remainder was allocated to a combination of legal expenses, operating costs, and a pending real estate acquisition.
As of July 10, Empery Digital holds 1,514 BTC, currently valued at almost $96.5 million, and maintains approximately $73.9 million in cash reserves. The firm still has $45 million in outstanding debt on its facility, as stated in the recent SEC filing.
Empery Digital confirmed that proceeds from the Bitcoin sale were directed toward debt repayment, a strategic real estate investment, and legal costs associated with a pending shareholder lawsuit.
Decrypt attempted to contact Empery Digital for comment regarding the recent asset sale and whether it signals a shift in treasury strategy, but did not receive a response in time for publication.
Plans for AI-Related Real Estate Acquisition
On June 30, Empery Digital announced a $65 million property deal. The agreement would give the company a 25% stake in a private entity that aims to develop a state-of-the-art artificial intelligence data center at a Midwest location.
Mini dictionary: Artificial intelligence (AI) data center – A specialized facility equipped with the hardware and infrastructure necessary to train, deploy, and run complex AI algorithms and handle vast amounts of data required by advanced AI models.
The investment into the data center reflects Empery Digital’s ongoing interest in tech-oriented assets, particularly those involving emergent technologies such as AI within its portfolio and operations.
Legal Challenges and Market Context
A significant portion of the Bitcoin sale proceeds also covered legal fees. Empery Digital is involved in ongoing shareholder litigation, as disclosed in prior financial statements. The legal costs continue to affect the company’s balance sheet as the case proceeds.
Elsewhere in the industry, other major Bitcoin holders have also liquidated assets to meet financial obligations. Strategy, one of the sector’s largest Bitcoin treasury holders, recently sold part of its $54 billion BTC reserves to fund dividend payments and address market concerns over its ability to meet financial commitments. The move contributed to declines in both its common and preferred share prices in recent weeks.
| Company | BTC Sold | Total BTC Held | Purpose of Sale |
|---|---|---|---|
| Empery Digital | 1,400 | 1,514 | Debt, AI real estate, legal costs |
| Strategy | Undisclosed | N/A (previously $54B in BTC) | Dividend payments |
Stock Performance
Empery Digital’s shares, trading under the EMPD ticker, rose about 2% on Friday to $3.87, according to data from Yahoo Finance. Over the past month, the stock has gained more than 14%, but is still down roughly 15% year-to-date.
