Empery Digital cleans house, sells half its $BTC for bills, lawyers, and a data center 💼

Publicly traded Empery Digital Inc. has unloaded nearly half of its Bitcoin treasury since early May, generating roughly $87.1 million to pay down debt, fund an AI-focused real estate acquisition and cover legal expenses tied to a shareholder lawsuit, according to an SEC filing this week. The company disclosed it sold 1,400 BTC since May 7 at an average price of about $62,200 per coin. Of the gross proceeds, $10 million went toward retiring outstanding debt on July 7, while the remainder is earmarked for a previously announced property acquisition—pending completion of a purchase and sale agreement—as well as legal costs from stockholder litigation disclosed in the company's most recent quarterly report, along with general operating costs.

The $65 million property deal, announced on June 30, is for a "25% ownership [stake] into a private entity that is acquiring a strategically located Midwest facility to be converted into a state-of-the-art AI data center." As of Thursday, Empery Digital held 1,514 BTC—currently valued at nearly $96.5 million—and approximately $73.9 million in cash, with $45 million still outstanding on its debt facility, the filing shows. Decrypt reached out to Empery Digital for comment regarding the sale and whether it impacts the firm's treasury strategy going forward, but did not immediately receive a response.

The stockholder litigation referenced in the filing was previously outlined in Empery Digital's quarterly report for the period ending March 31, though the company did not detail the specific legal costs in this week's disclosure. The filing does not specify a timeline for completing the property acquisition or resolving the pending litigation. Empery Digital (EMPD) stock has ticked up about 2% on the day so far Friday, per data from Yahoo Finance.