Never sell treasury model cracks again as 1,635 BTC is offloaded shrinking Empery reserves by 76% in weeks

The post-quarter sales rapidly reduced a treasury that had already been used to fund cash needs earlier in the year. Empery sold 1,167 $BTC for $80.1 million during the first half, when it spent $54.0 million on share repurchases, repaid $50.0 million on its Repo Facility and made a separate $10.0 million repayment under its master loan arrangement.

The company said both equity and Bitcoin-sale proceeds supported the Repo Facility repayment, but it did not allocate the amounts or trace one pool of sale proceeds to every use.

A proposed>closed $20 million investment in Cardinal Data Power, which gave Empery an approximately 8% stake. No additional funding obligation tied specifically to the CDP investment was disclosed.

At June 30, Empery reported $3.7 million of cash, including restricted cash, and a $5.7 million working-capital deficit. Management said a mix of cash, operations, derivatives proceeds, borrowing and potential Bitcoin sales should cover planned operations, debt and the conditional property contribution for more than one year.

Management listed Bitcoin sales as one of several funding sources, not a certainty. Further collateral pressure or a closing of the property acquisition would still leave the company managing a liquid $BTC cushion that had fallen to a derived 325 $BTC by Aug. 6.