Empery Digital Sells 1,400 BTC to Cut Debt, Fund Expansion

Nasdaq-listed Empery Digital Inc. (NASDAQ: EMPD) has sold 1,400 Bitcoin since early May, raising approximately $87.1 million as the company moves to strengthen its balance sheet, reduce debt, and finance future expansion.

According to a Form 8-K filed with the U.S. Securities and Exchange Commission (SEC) on July 10, the company sold the Bitcoin at an average price of $62,200 per BTC between May 7 and July 10. Despite the sale, Empery continues to maintain a sizable Bitcoin treasury, holding 1,514 BTC and $73.9 million in cash as of July 10.

Why Empery sold 1,400 Bitcoin

The company said the proceeds would be allocated across several priorities rather than distributed to shareholders. According to the filing, Empery used part of the funds to repay $10 million of outstanding debt on July 7. 

The remaining cash would be used to finance the company’s previously announced property acquisition once the purchase agreement closes, cover elevated legal expenses related to ongoing shareholder litigation disclosed in its first-quarter earnings report, and support day-to-day operations. Following the repayment, Empery reported $45 million remains outstanding under its debt facility.

Although Empery sold nearly half of its Bitcoin holdings, the filing indicates the company is not abandoning its Bitcoin treasury strategy. With 1,514 BTC still on its balance sheet, Bitcoin remains one of the company’s largest treasury assets.

The move suggests management is using its crypto holdings as a capital management tool while maintaining long-term exposure to the asset.

Using Bitcoin to manage corporate finances

Empery’s decision reflects a broader trend among publicly traded companies increasingly treating Bitcoin as a strategic treasury asset that can be deployed when needed. Rather than holding Bitcoin indefinitely, some firms have begun monetizing portions of their reserves to improve liquidity, repay debt, or fund expansion.

Earlier this year, Sequans Communications took a far more drastic step by liquidating its entire Bitcoin treasury after declining revenue from its IoT semiconductor business and mounting operating losses forced the company to prioritize debt repayment. Sequans ultimately abandoned its Bitcoin treasury strategy altogether as it worked to stabilize its finances.

Empery’s approach stands in contrast. Instead of exiting Bitcoin, the company has sold only part of its holdings while preserving a substantial treasury position, suggesting the sales are intended to optimize capital allocation rather than signal a loss of confidence in the asset.

Corporate Bitcoin strategies continue to evolve

The contrasting decisions highlight how public companies are adopting increasingly flexible approaches to managing digital asset treasuries.

For some firms, Bitcoin has become a reserve asset that can be partially monetized to finance acquisitions, reduce leverage, or navigate periods of elevated expenses. Others, facing more severe operational pressures, have chosen to exit their positions entirely.

Empery’s latest filing suggests the company falls into the first category, using Bitcoin to strengthen its financial position while continuing to view the cryptocurrency as a long-term component of its corporate treasury strategy.

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