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Empery Cuts Bitcoin Holdings to 1,279 $BTC
Empery Digital is drawing down its bitcoin treasury at a rapid pace as debt obligations and potential target="_blank" rel="noopener noreferrer">latest quarterly filing. That left Empery with 1,279 $BTC. However, 954 $BTC were pledged as collateral against $35 million of debt. That leaves just 325 $BTC unrestricted, down sharply from 1,375 $BTC at June 30.
The sales extend a broader shift in Empery’s treasury strategy. During the first half of the year, it sold another 1,167 $BTC for $80.1 million while also spending heavily on share repurchases and debt reduction.
Bitcoin Treasury Becomes a Liquidity Tool
Empery used cash from equity issuance and bitcoin sales to support several funding needs during the first half.
The company spent $54 million repurchasing shares, repaid $50 million under its repo facility, and made a separate $10 million loan repayment. It did not specify exactly how individual bitcoin-sale proceeds were allocated among those uses.
The company’s loan structure also places pressure on its remaining holdings. Amended terms require collateral equal to 174% of the loan balance. A margin call is triggered if that ratio falls below 153%, while liquidation can occur below 143% if the shortfall is not addressed within 12 hours.
Empery transferred 576 $BTC to its lender in February and another 186 $BTC in June following collateral calls. The filing did not disclose any forced liquidation.
After June 30, the company repaid $20 million of debt. Its lender returned 585 $BTC, reducing pledged collateral from 1,539 $BTC to 954 $BTC.
Data Center Commitment Could Add Pressure
Empery may face another sizeable cash requirement through a proposed target="_blank" rel="noopener noreferrer">$20 million investment in Cardinal Data Power, which gave it an approximately 8% stake.
As of June 30, Empery reported $3.7 million of cash, including restricted cash, and a $5.7 million working-capital deficit. Management said existing cash, operations, derivatives proceeds, borrowing and potential bitcoin sales should support planned needs for more than a year.
Still, with unrestricted bitcoin reduced to 325 $BTC, further collateral calls or a property closing would leave Empery with considerably less room to maneuver.