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).
