Key highlights:

  • Empery Digital offloaded 1,635 BTC between July 1 and August 6
  • Only 325 BTC remains unrestricted, down about 76% from June 30
  • The company had to pay off $20 million worth of debt and fund a data center project

Bitcoin treasury companies are under immense pressure as firms keep selling part of their holdings rather than buying more tokens. Empery Digital is the latest company to take this route.

According to a SEC filing, the company sold 1,635 BTC for $102.2 million between July 1 and August 6, 2026. The sales have reduced the amount of Bitcoin that the company can freely use. The move also comes as the firm deals with debt and plans to invest in data center infrastructure.

Empery Digital cuts its unrestricted Bitcoin holdings

The firm is the newest institution to join Strategy, which has continued selling its BTC to maintain its cash reserves.

The sales reduced Empery Digital's total Bitcoin holdings to 1,279 BTC. But not all of the coins are available for the company to sell or use. About 954 BTC was pledged as collateral for the $35 million company debt. That leaves 325 BTC not locked up.

Before the sales, the company had 1,375 unrestricted BTC. With the sales, holdings have fallen by 76% in over five weeks.

The firm had made sales earlier in the year.  In the first half of 2026, the company sold 1,167 BTC for $80.1 million. Empery Digital used to hold over 4,000 BTC but has since shifted grounds to help manage its financial obligations.

Debt repayment gives the company some breathing room

The Bitcoin sales are part of efforts to reduce debt load of the firm. Empery Digital repaid $20 million under its master loan arrangement. This reduced its outstanding debt from $55 million to $35 million.

After the repayment was made, the lender returned 585 BTC to the company. The amount of Bitcoin pledged as collateral then dropped from 1,539 BTC to 954 BTC.

Meanwhile, the loan has very strict collateral requirements. The agreement has a 153% collateral call level and a 143% liquidation level. The company is also given just 12 hours to restore the required collateral if it falls below the liquidation level.

This is because a decline in Bitcoin price could put more pressure on the company's balance sheet. The company had already transferred 576 BTC to its lender in February after a collateral call and another 186 BTC following a June call.

Data center commitment another reason for the sell-off

There has been a trend of treasury companies pivoting towards the AI sector amid the bear market. 

Empery Digital shared plans earlier into the data center and AI infrastructure sector. Through its EMHU venture with TexStack Infrastructure, the company invested $2.9 million and could potentially put in another $62.1 million if a proposed property purchase clears.

The property, valued at $230 million, would be converted into an AI data center. The deal has not been finalized yet as of press time. EMHU extended its due diligence period by 15 days to August 13, with the possibility of another 15-day extension. 

The company said it expects the transaction to close during the third quarter, but added that there is still a possibility that the deal might not go through.

In a related development, Empery Digital completed a $20 million investment in Cardinal Data Power on July 20. The investment gave the company an 8% stake.

Empery Digital has also been using money for share buybacks. In the Bitcoin sales period, the company repurchased 26.24 million shares for $149.7 million. At the end of June, the company had about $3.6 million in cash, cash equivalents, and restricted cash. They also reported a working capital deficit of $5.6 million.