Empery sells 1,635 BTC for $102.2M; liquidity tightens
Empery sold 1,635 BTC for $102.2 million between July 1 and Aug. 6, leaving 1,279 BTC. With 954 BTC pledged against a $35M loan, 325 BTC are unrestricted.
Empery Digital sold 1,635 BTC for $102.2 million between July 1 and Aug. 6, reducing its bitcoin holdings to 1,279 BTC. Of that balance, 954 BTC are pledged as collateral against a $35 million loan, leaving 325 BTC unrestricted.
The company reported selling 1,167 BTC for $80.1 million in the first half of the year. Empery used cash from equity issuance and bitcoin sales to fund $54 million in share repurchases, $50 million repaid under a repurchase facility and a $10 million loan repayment. The filing does not allocate specific bitcoin-sale proceeds to individual items.
The loan’s amended terms require collateral equal to 174% of the loan balance, with a margin call triggered if the ratio falls below 153% and possible liquidation if it drops beneath 143% and the shortfall is not corrected within 12 hours. The filing shows Empery transferred 576 BTC to the lender in February and 186 BTC in June after collateral calls. After repaying $20 million of debt following June 30, the lender returned 585 BTC, reducing pledged collateral from 1,539 BTC to 954 BTC. The filing did not disclose any forced liquidations.
Empery has a potential near-term capital obligation tied to a proposed property acquisition for a data-center venture. The company contributed $2.9 million to EMHU, a property vehicle managed by Texstack, and could be required to provide an additional $62.1 million if the acquisition closes. Separately, Empery completed a $20 million investment in Cardinal Data Power that resulted in roughly an 8% stake.
As of June 30 Empery reported $3.7 million of cash, including restricted cash, and a $5.7 million working-capital deficit. The filing states that existing cash, operations, derivatives proceeds, borrowing and potential bitcoin sales “should support planned needs for more than a year.” With unrestricted bitcoin down to 325 BTC from 1,375 BTC at June 30, available liquid reserves from its crypto holdings are reduced compared with earlier in the year.
The filing shows the company has been selling bitcoin and using proceeds for buybacks and debt reduction, which changed the composition of its treasury and reduced the pool of unpledged bitcoin available for future cash needs.
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