Empery Invests $20M in AI Data Center Developer Cardinal Data Power
Empery Digital has made a significant investment in Cardinal Data Power, investing $20 million in its $70 million Series A funding round. The deal gives Empery an approximately 8% stake in the data center developer.
The funds raised will support the development of a 750-megawatt data center campus in West Texas, with the first phase expected to come online in 2027 and expansion targets of 1 gigawatt by 2029. The campus is designed for artificial intelligence and high-performance computing workloads.
Empery Digital has been shifting its focus towards AI infrastructure, having sold about 1,400 BTC over a two-month period earlier this month to raise nearly $87.1 million. This move comes after pressure from shareholder Tice P. Brown, who called for the abandonment of the digital asset treasury strategy and demanded the resignation of the CEO and board of directors.
The company's reserves have been reduced to 1,514 BTC, down from a peak balance of 4,081 BTC in March. The landscape for digital asset treasury companies is undergoing significant changes this year, with some firms increasing their exposure while others restructure or liquidate their holdings.