Empery Digital Sells 1,635 BTC, Shrinking Reserves by 76% in Weeks

Bitcoin-treasury company Empery Digital sold 1,635 BTC for $102.2 million from July 1 through Aug. 6, leaving it with 1,279 BTC, according to its latest quarterly filing.

Of that total, 954 BTC was restricted as collateral against $35 million of debt. Subtracting the pledged balance from total holdings leaves 325 BTC unrestricted, down from 1,375 at June 30.

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.

Collateral and data-center commitments narrow Empery’s options

The amended loan terms set a 174% collateral target. A margin call occurs below 153%, while liquidation can occur below 143% if Empery does not cure the breach within 12 hours.

Empery said it transferred 576 BTC to its lender on Feb. 4 and another 186 BTC on June 3 after collateral calls. The filing did not report an executed lender liquidation, so the disclosed transfers were collateral top-ups rather than forced sales.