Empery sells 1,635 BTC, leaves 325 BTC unrestricted

Empery Digital sold 1,635 BTC for $102.2 million between July 1 and Aug. 6, leaving the company with 1,279 BTC as of Aug. 6. Of that total, 954 BTC were pledged as collateral against $35 million of outstanding debt, leaving 325 BTC unrestricted, down from 1,375 BTC at June 30.

The post-quarter sales followed earlier disposals during the first half of the year. Empery sold 1,167 BTC for $80.1 million in H1. Proceeds from those earlier sales funded $54.0 million in share repurchases, a $50.0 million repayment on its Repo Facility and a separate $10.0 million repayment under a master loan arrangement. The company did not allocate specific sale proceeds to each use.

Loan terms require a 174% collateral target, with a margin call triggered below 153% and potential lender liquidation possible below 143% if breaches are not cured within 12 hours. Empery transferred 576 BTC to its lender on Feb. 4 and 186 BTC on June 3 after collateral calls; the filings treat those transfers as top-ups rather than lender-initiated liquidations. After a $20 million repayment following June 30, the lender returned 585 BTC, reducing pledged collateral from 1,539 BTC to 954 BTC and lowering outstanding debt from $55 million to $35 million.

A proposed data-center property acquisition could add a $62.1 million contingent claim on Empery’s cash resources. Empery has contributed $2.9 million to EMHU, a separate property venture managed by TexStack. If the acquisition closes, TexStack controls the closing process and can require mandatory pro-rata capital calls that would be backed by Empery’s guarantee, creating a potential additional funding obligation.

Empery closed a $20 million investment in Cardinal Data Power that gave it about an 8% stake; no additional funding obligation tied to that investment was disclosed. At June 30 the company reported $3.7 million of cash, including restricted cash, and a $5.7 million working-capital deficit. Management projects that a mix of cash, operating income, derivatives proceeds, borrowing and potential Bitcoin sales should cover planned operations, debt and the conditional property contribution for more than one year.

Available unrestricted Bitcoin fell to a derived 325 BTC by Aug. 6. A collateral call or a closing of the property acquisition would create additional funding obligations that could require further borrowing or asset sales.