Empery Digital cuts unrestricted Bitcoin holdings 76%

Empery Digital sold 1,635 Bitcoin for $102.2 million between July 1 and Aug. 6, cutting its total holdings to 1,279 BTC, according to an Aug. 7 SEC filing. 

Of that balance, 954 BTC remained pledged to a lender, leaving a derived 325 BTC unrestricted.

The latest disclosure extends a sharp reduction in the Nasdaq listed company’s Bitcoin treasury. Empery held 2,914 BTC on June 30, including 1,375 unrestricted coins. The available pool therefore fell by 1,050 BTC, or about 76.4%, in just over five weeks.

Empery Digital’s unrestricted Bitcoin pool falls 76%

The July and August sales came after Empery had already sold 1,167 BTC for $80.1 million during the first half of 2026. Those earlier disposals produced a $56.8 million realized loss based on the original cost of the Bitcoin sold, according to the filing.

The latest figures also move beyond the company’s July 10 filing. At that point, Empery said it held 1,514 BTC and about $73.9 million in cash after selling 1,400 BTC since May 7. As crypto.news reported in earlier July coverage, the company said those proceeds were intended for debt repayment, a planned property purchase, legal expenses and operations.

The filing also shows how the treasury sales fit into a broader capital allocation plan. Through Aug. 6, Empery had repurchased 26.24 million shares for $149.7 million at an average price of $5.71. The company said proceeds from $105 million of borrowings, together with Bitcoin sales, helped finance the repurchases. Digital asset losses totaled $106.3 million in the first half and represented 87% of operating expenses.

That marks a major change from the company’s original treasury expansion. In August 2025, Empery reported holding more than 4,000 BTC as it pursued a strategy centered on increasing Bitcoin exposure. Its balance sheet now combines a much smaller Bitcoin reserve with debt reduction, share repurchases and new infrastructure investments.

Debt fell, but most remaining BTC is still pledged

Empery repaid another $20 million under its master loan arrangement after June 30, reducing outstanding borrowings from $55 million to $35 million. The lender returned 585 BTC, bringing pledged collateral down from 1,539 BTC to 954 BTC.

The loan still carries tight collateral conditions. A February amendment set the collateral call level at 153% and the liquidation level at 143%, while reducing the period to restore collateral at the liquidation threshold to 12 hours. Empery had already supplied 576 BTC after a February collateral call and another 186 BTC after a June call. In related March coverage, the company was already selling Bitcoin while reducing leverage and repurchasing shares.

Data center funding could create another cash requirement

Empery is also expanding beyond its Bitcoin treasury strategy. Through its EMHU venture with TexStack Infrastructure, the company contributed $2.9 million and committed another $62.1 million if a proposed Midwest property acquisition closes. The roughly $230 million property is intended to be converted into an AI data center.

The Aug. 7 filing adds a new deadline. EMHU extended its due diligence review period by 15 days to Aug. 13 and can extend it another 15 days. Empery said it expects the acquisition to close during the third quarter but cautioned that “there can be no assurance that it will occur.”

Separately, Empery closed a $20 million investment in Cardinal Data Power on July 20 for an approximately 8% stake, according to an SEC release. In recent data center coverage, crypto.news tracked a broader shift by several digital asset treasury companies toward AI infrastructure as the treasury model came under pressure.

Management said cash, operations, borrowing and potential Bitcoin sales should “be sufficient to fund planned operations beyond one year.” The statement is forward looking. Empery had $3.6 million of cash, cash equivalents and restricted cash and a $5.6 million working capital deficit at June 30, while its unrestricted Bitcoin cushion has since narrowed to 325 BTC.

What happens next depends partly on the Aug. 13 property review deadline and whether EMHU extends the review again or moves toward closing. Any further Bitcoin disposal would require another company decision. The current filing lists potential Bitcoin sales among possible funding sources but does not say additional sales are certain.