Empery Digital Sells 1,635 BTC for $102.2 Million, Shrinks Reserves by 76%
Empery Digital, a Bitcoin treasury company, has offloaded $102.2 million worth of BTC in just over a month, shrinking its reserves by a significant 76%.
The company sold 1,635 BTC between July 1 and August 6, retaining only 1,279 BTC, which includes 954 pledged as collateral against $35 million of debt. This leaves Empery with an unrestricted stash of 325 BTC, down from 1,375 at the end of June.
The rapid sale of Bitcoin comes after Empery had already used its treasury to fund cash needs earlier in the year. In the first half of this year, the company sold 1,167 BTC for $80.1 million and spent $54.0 million on share repurchases, repaid $50.0 million on its Repo Facility, and made a separate $10.0 million repayment under its master loan arrangement.
The amended loan terms set a 174% collateral target, with Empery facing potential liquidation if the company's holdings fall below 143%. The lender has already called for additional collateral, transferring 576 BTC on February 4 and another 186 BTC on June 3. However, the company was able to ease some of this pressure by repaying $20 million after June 30.
Empery's options are further narrowed by a proposed data-center property acquisition that could put an additional $62.1 million claim on the company's cash. The property venture is managed by TexStack, which controls the closing process and can make mandatory pro-rata capital calls backed by Empery's guarantee.