
According to an August 7 SEC filing, Empery Digital sold 1,635 Bitcoin for $102.2 million between July 1 and August 6, 2026, reducing its total holdings to 1,279 BTC. The company's unrestricted Bitcoin pool fell by 1,050 BTC, or approximately 76.4%, in just over five weeks. Only 325 BTC remained unrestricted after 954 BTC were secured against $35 million of outstanding company debt, leaving the company with a significantly reduced digital asset cushion. This follows earlier sales of 1,167 BTC for $80.1 million during the first half of 2026, when the company spent $54.0 million on share repurchases and made separate debt repayments. The selling pressure extends beyond Empery, with whale activity intensifying as another whale sold 1,019 BTC worth $66.4 million over the past three weeks, bringing total whale selling to 7,513 BTC worth $486.9 million.
As reported by the SEC filing, Empery Digital repaid $20 million after June 30, reducing outstanding borrowings from $55 million to $35 million. The lender returned 585 pledged Bitcoin tokens, bringing pledged collateral down from 1,539 BTC to 954 BTC. The loan maintains tight collateral conditions with a 153% collateral call level and 143% liquidation level, while requiring restoration of collateral at the liquidation threshold within 12 hours. The company had previously transferred 576 BTC to its lender on February 4 and another 186 BTC on June 3 after collateral calls, though no executed liquidations were reported in the latest filing. The $62 million commitment related to the data center property purchase means the company is likely to sell or commit the remaining Bitcoin holdings.
According to the filing, Empery Digital repurchased 26.24 million shares for $149.7 million at an average price of $5.71 through August 6. The company used proceeds from $105 million of borrowings and Bitcoin sales to finance these share repurchases. Digital asset losses totaled $106.3 million in the first half, representing 87% of operating expenses. The company expects cash, operations, borrowing and potential Bitcoin sales to fund planned operations beyond one year, though management listed Bitcoin sales as one of several funding sources rather than a certainty. Further collateral pressure or closing of the proposed property acquisition would still leave the company managing a liquid BTC cushion.
Through its EMHU venture with TexStack Infrastructure, Empery Digital contributed $2.9 million and committed another $62.1 million for a proposed Midwest property acquisition. The roughly $230 million property is intended to be converted into an AI data center. The company extended its due diligence review period by 15 days to August 13 and can extend it another 15 days, with management expecting the acquisition to close during the third quarter. The property commitment is distinct from Empery's closed $20 million investment in Cardinal Data Power, which gave Empery an approximately 8% stake.
As reported in the SEC filing, Empery Digital closed a $20 million investment in Cardinal Data Power on July 20 for an approximately 8% stake. The company had $3.7 million of cash, including restricted cash, and a $5.7 million working-capital deficit at June 30. Management stated that a mix of cash, operations, derivatives proceeds, borrowing and potential Bitcoin sales should be sufficient to fund planned operations, debt and the conditional property contribution for more than one year. The company's treasury model has shifted from treating Bitcoin as a sacred reserve to using it as liquidity, with the post-quarter sales rapidly reducing reserves that had already been used to fund cash needs earlier in the year. The 37% YTD decline in EMPD stock and over 72% drop over the past year reflect the challenging operating environment facing the company.