Empery Digital Unloads 1,635 BTC, Shrinks Reserves by 76% Amid Debt Repayment Efforts
Empery Digital, a Bitcoin treasury company, has made significant sales of its BTC holdings. Between July 1 and August 6, it sold 1,635 BTC for $102.2 million, reducing its reserves by 76%. This move comes after a period where the company used its treasury to fund various needs, including share repurchases and debt repayments.
As of June 30, Empery had 1,375 unrestricted BTC. However, following the sales, it was left with only 325 BTC. The restricted collateral balance decreased from 954 BTC to 954 BTC after a $20 million repayment to its lender on August 6, which reduced pledged collateral and debt.
The company's loan terms require a minimum of 153% collateral coverage. Empery has been making efforts to ease pressure on its debt obligations, including repaying $20 million in June. However, it still faces potential challenges from a proposed data-center property acquisition that could put another $62.1 million claim on its cash.
Empery's management stated that it has sufficient funding sources, including cash, operations, derivatives proceeds, borrowing, and potential Bitcoin sales, to cover planned operations, debt, and the conditional property contribution for over a year.