External ReportingPublicado hace 4 días

Empery Slashes Bitcoin Holdings 76%, Sells 1,635 BTC to Fund AI Pivot

Empery reportedly cut its Bitcoin holdings by 76%, selling 1,635 BTC. The proceeds are intended to support a pivot toward artificial intelligence initiatives.

Publisher finance.biggo.com 3 min de lectura

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Puntos Clave

Empery sold 1,635 BTC.
The sale reduced the company’s Bitcoin holdings by 76%.
The reported purpose of the sale is to fund an AI-focused strategic pivot.

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Nasdaq-listed Bitcoin holding company Empery Digital sold 1,635 BTC over approximately five weeks between July 1 and August 6, 2026, raising $102.2 million (approximately ¥16 billion), according to a quarterly report (10-Q) filed with the U.S. Securities and Exchange Commission on August 7. The divestment reduced the company's total Bitcoin holdings to 1,279 BTC, with freely available Bitcoin — those not pledged as collateral — plummeting 76% from 1,375 BTC at end-June to just 325 BTC.

Of the remaining Bitcoin holdings post-sale, 954 BTC are pledged as loan collateral, leaving less than 30% as an effectively liquid resource. The company had already sold 1,167 BTC for $80.1 million (approximately ¥13 billion) in the first half of 2026, bringing cumulative year-to-date sale proceeds to $182.3 million (approximately ¥29 billion).

Financial Restructuring and Share Buyback Reality

Empery has channeled proceeds from Bitcoin sales into aggressive share repurchases and debt reduction. Cumulatively through August 6, the company acquired 26.24 million of its own shares at an average price of $5.71, spending a total of $149.7 million (approximately ¥24 billion). According to SEC filings, the funding source was a combination of $105 million in borrowings and Bitcoin sale gains, though the company did not clearly delineate which funds were allocated to which purposes.

On the liability side, Empery made an additional $20 million (approximately ¥3 billion) repayment under its master loan agreement after end-June, reducing the outstanding balance from $55 million to $35 million (approximately ¥5.5 billion). In connection with this repayment, the lender returned 585 BTC previously held as collateral, reducing encumbered Bitcoin from 1,539 BTC to 954 BTC.

However, loan covenant terms remain stringent. Under a February amendment, the collateral maintenance ratio was set at 153% with a liquidation threshold of 143%, and the cure period upon reaching the liquidation threshold was shortened to just 12 hours. The company posted an additional 576 BTC in collateral following a February margin call and another 186 BTC after a June call.

Positioning for AI Data Center Expansion

Empery is accelerating its strategic pivot away from a Bitcoin treasury model. Through joint venture EMHU, formed with TexStack Infrastructure, the company is advancing plans to repurpose a Midwest property into an AI data center, having already contributed $2.9 million (approximately ¥500 million) in capital. Should the property acquisition close, Empery faces additional capital commitment obligations of up to $62.1 million (approximately ¥10 billion). The total property value is estimated at approximately $230 million (approximately ¥36 billion).

According to the August 7 filing, EMHU extended its due diligence period by 15 days to August 13, with an option for a further 15-day extension. Empery anticipates completing the acquisition during the third quarter but cautioned that "there can be no assurance" it will materialize.

Separately, Empery completed a $20 million investment in Cardinal Data Power on July 20, acquiring an approximately 8% equity stake. The trend of cryptocurrency treasury companies expanding into AI infrastructure is gaining traction industry-wide as the Bitcoin treasury model faces shifting market conditions.

Financial Fragility

Despite ongoing Bitcoin sales, Empery's liquidity position remains strained. Cash, cash equivalents, and restricted cash totaled just $3.6 million (approximately ¥600 million) at end-June, with working capital in deficit at $5.6 million (approximately ¥900 million). Furthermore, the reduction of freely available Bitcoin to 325 BTC has further eroded financial flexibility.

Management expressed confidence that "cash, business operations, borrowings, and potential Bitcoin sales will provide sufficient funding for planned operations beyond one year," but this remains a forward-looking projection. Digital asset losses reached $106.3 million (approximately ¥17 billion) in the first half, accounting for 87% of operating expenses. The 1,167 BTC sold earlier in the year also generated realized losses of $56.8 million (approximately ¥9 billion) on a cost basis.

The company that once held over 4,000 BTC as of August 2025 and championed expanding Bitcoin exposure is now a relic of the past. Today's balance sheet reflects drastically reduced Bitcoin reserves alongside new capital allocation priorities: debt reduction, share buybacks, and AI infrastructure investment.

The immediate focus now turns to the August 13 due diligence deadline for the AI data center property and whether EMHU will proceed toward acquisition. While additional Bitcoin sales were cited in the filing as one "potential source of funding," no definitive plans have been disclosed at this stage.

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