Empery Digital Invests $20M in Cardinal Data Power Amid Shift Away from Bitcoin Treasury

Empery Digital has invested $20 million in Cardinal Data Power, acquiring an approximately 8% stake in the company. This investment is part of a Series A round worth around $70 million and aims to support the development of a 750-megawatt data center campus in West Texas.

The project, expected to begin delivering power by 2027, will eventually expand to 1 gigawatt by 2029 and reach a capacity of over 5 gigawatts. Empery's investment highlights growing demand for large-scale compute infrastructure and its potential as a near-to-medium term driver of value creation.

Interestingly, this move comes as Empery is shifting away from its earlier Bitcoin treasury approach. The company recently sold around 1,400 BTC over two months for approximately $87.1 million, leaving it with 1,514 BTC. This reduction in Bitcoin holdings may be linked to shareholder pressure and the company's decision to fund AI infrastructure investments using realized value.

Empery's investment in Cardinal Data Power reflects a broader trend in the corporate Bitcoin landscape. Some companies are unwinding their positions or restructuring their approaches, while others remain committed to accumulation. The development of permanent-capital holding companies, such as Orange Juice HODLINGS, which combines long-term ownership with a Bitcoin-backed balance sheet, is also gaining traction.