Empery Digital has sold 1,400 Bitcoin (BTC) since early May, cutting its Bitcoin holdings by roughly 48%. According to a securities filing disclosed on July 10, the company sold at an average price of $62,200 per token, raising approximately $87.1 million as the Nasdaq-listed firm pivots toward AI infrastructure. The selling began after May 7 and represents a significant reduction from the company's previous Bitcoin position. Empery began offloading Bitcoin in February to buy back shares and repay its Two Prime Lending facility, with the pace accelerating as Bitcoin prices declined from their highs. By early April, the company had already sold hundreds of coins in weekly batches, including 370 in one week. The latest disposal follows an earlier round of Bitcoin sales this year, with Empery disclosing it sold 722 BTC for approximately $50 million between January 1 and March 25, 2026.
Empery Digital repaid $10 million of debt on July 7 and set aside the remaining proceeds for a planned property deal and legal costs tied to shareholder litigation. As of July 10, the firm held 1,514 BTC and approximately $73.9 million in cash, while still owing $45 million on its debt facility. The company has been selling Bitcoin since February to buy back shares and repay its Two Prime Lending facility, with the pace accelerating as Bitcoin prices declined from their highs. Company filings show the proceeds are being allocated across several financial obligations rather than additional Bitcoin purchases, with funds being used to repay debt, finance acquisitions, cover legal expenses related to ongoing stockholder litigation and support general operations. Co-CEO Ryan Lane stated that going forward, the company plans to continue allocating capital to similar hyperscaler-anchored opportunities.
On June 29, Empery announced a $65 million investment for a 25% stake in a Midwest facility set to close in the third quarter. The site carries approximately 150 megawatts of power and could expand to 300 megawatts. Its partner, Hunt Properties, has managed over $2.5 billion in real estate since 1987 and was formed to handle holdings of Texas oil tycoon H.L. Hunt's family. A non-binding agreement outlines a triple net lease worth up to $1 billion with a global AI hardware leader as the tenant. Empery continues to hold 1,514 BTC but stated it has no plans to accumulate more and may sell additional BTC to fund other opportunities, as reported by the company.
Investors reacted calmly to the Bitcoin sales, with EMPD trading around $3.83 on Friday, up less than 1%, after an early spike to $3.96 faded. The shares remain approximately 75% below their 52-week high of $15.80, with the market valuing Empery near $108 million at current levels. This valuation trails the roughly $126 million of Bitcoin and cash on the company's books, net of debt, a gap that has affected other Bitcoin treasury companies. Activist investor Tice Brown, who holds a 12% stake, urged the board in April to restart maximum daily buybacks, though Empery has historically funded such buybacks by selling Bitcoin, the very approach the activists want expanded. Empery was among the hastily formed SPAC deals during the 2025 digital asset treasury company frenzy, with most seeing share prices collapse by 90% or more from the 2025 highs.
The retreat from Bitcoin extends beyond Empery, with MicroStrategy reducing its holdings after years of buying and Nasdaq-listed miner Riot selling Bitcoin to fund AI data center builds. Bitwise executive Matt Hougan noted that MicroStrategy's run as the top Bitcoin buyer is likely over, with mining and treasury stocks now trading like AI infrastructure plays. Empery has also scrapped its Bitcoin treasury dashboard, stating that holdings no longer capture the company's full value as it focuses on its AI infrastructure investment strategy. Recent treasury decisions by other publicly traded Bitcoin holders show companies taking different approaches depending on their balance sheet needs, with Nakamoto Inc. reducing outstanding debt by about $45 million after selling roughly 600 BTC and Capital B seeking additional funding to expand Bitcoin holdings rather than selling existing reserves. Digital assets posted a third consecutive quarter of losses in Q2 2026, the longest losing streak since the 2022 bear market, as institutional capital rotated into AI equities and Bitcoin ETFs recorded their largest quarterly outflow since launch.
