Nasdaq-listed Empery Digital has sold nearly half of its Bitcoin reserves since early May. According to a filing with the SEC, the firm offloaded 1,400 BTC since May 7 for about $87.1 million. The proceeds went toward paying down debt, funding a real estate deal, and covering legal costs. The company belongs to a group of public issuers that have held Bitcoin as a treasury asset for years.
What Happened To Empery Digital's Reserves
According to its filing with the US Securities and Exchange Commission, Empery Digital sold 1,400 Bitcoin at an average price of about $62,200 per coin. The total proceeds from the sale came to roughly $87.1 million. As of Thursday, July 9, the company still held 1,514 BTC, worth close to $96.5 million at current prices. Beyond its crypto reserves, Empery Digital holds about $73.9 million in cash, while $45 million remains outstanding on its debt facility. Before this sale, the company had spent years building up its Bitcoin position, presenting it to investors as a separate balance sheet asset alongside its core business.
Where The Sale Proceeds Are Going
Of the total, $10 million went toward paying down debt on July 7. The rest is set aside for a $65 million real estate deal announced on June 30: the company plans to acquire a 25% stake in a private entity buying a Midwest property to convert into an AI data center. Part of the proceeds will also cover legal costs tied to a shareholder lawsuit the company first disclosed in its quarterly report for the period ending March 31. Empery Digital has not disclosed the exact size of those costs, and the filing gives no timeline for completing the property deal either.
- Paying down $10 million in debt on the credit facility
- Funding a stake in an AI data center project
- Legal costs from shareholder litigation and operating needs
"The investment signals a shift and indicates where the company plans to allocate capital going forward as we focus on delivering the most value to our shareholders."
- Ryan Lane, Co-CEO of Empery Digital, in a statement to Decrypt
Why The Company Is Selling Bitcoin Now
Empery Digital's move fits a broader pattern among public companies holding large crypto reserves. Strategy offers the clearest example, regularly selling portions of its $54 billion Bitcoin stash to fund dividends on its preferred shares and ease investor concerns about its financial footing. Those concerns had previously weighed on both its common and preferred stock. Empery Digital appears to follow similar logic: crypto holdings on the balance sheet are increasingly treated as a liquidity source rather than a purely long-term reserve. Dozens of smaller Nasdaq issuers have copied this model in recent years, and not all of them are holding up equally well under pressure.
How The Market Reacted
Shares of Empery Digital (Nasdaq: EMPD) rose about 2% on Friday, trading around $3.87. The stock is up more than 14% over the past month, though it remains down roughly 15% for the year. The company has not given a timeline for completing the real estate deal or resolving the shareholder lawsuit, leaving its next steps on the remaining crypto reserves an open question. The next quarterly report should show whether this sale was a one-off move or the start of a longer stretch of disposals.
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