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Empery Digital shares rise after selling Bitcoin treasury to fund AI data center project
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Shares in Bitcoin treasury company Empery Digital rose on Friday after the firm disclosed it had sold nearly half its Bitcoin holdings to fund an AI data center project and pay down debt. Empery Digital (EMPD) shares popped 4.2% to $3.95 within the first 35 minutes of trading before closing up 1.58% at $3.86, according to Google Finance data. The stock movement suggests investors viewed the Bitcoin sale favorably amid shifting sentiment away from Bitcoin treasury strategies and toward AI-related investments.
The company, which previously operated as an electric powersports vehicle manufacturer, revealed it sold 1,400 Bitcoin (BTC) at an average price of $62,200 over the past two months, generating roughly $87.1 million. A portion of the proceeds funded the firm’s 25% stake in a Hunt Properties-affiliated venture that is acquiring an industrial site for conversion into an AI data center. Another $10 million was used to pay off outstanding debt, according to the company’s disclosure.
Empery had pivoted to a Bitcoin-centric treasury strategy in mid-2025 when Bitcoin was pushing toward its all-time high of $126,080 set in October. The recent sales trimmed the company’s holdings by 48%, reducing them to 1,514 Bitcoin worth approximately $97 million at current prices. At its peak, Empery held 4,081 Bitcoin before offloading some in March and April.
The Bitcoin sale follows months of pressure from Tice P. Brown, a near-10% shareholder, who called on the firm to abandon its Bitcoin-buying strategy and demanded the resignation of its CEO and entire board. Brown’s activism reflects growing skepticism about corporate Bitcoin treasury strategies, especially as AI ventures attract more capital. Empery’s move aligns with a broader trend, as even the largest corporate Bitcoin holder, Strategy, sold 3,588 Bitcoin worth $216 million earlier this month to cover dividend payments, breaking its previous “never sell” stance.
Industry observers note that the favorable market reaction to these sales indicates a shift in investor priorities, with capital flowing toward AI infrastructure projects rather than pure Bitcoin exposure. The fund’s involvement in the AI data center venture positions Empery to capitalize on the booming demand for computing power. However, the company’s reduced Bitcoin holdings may limit its exposure to future cryptocurrency gains.
Looking ahead, Empery’s dual focus on AI and crypto could appeal to a broader investor base, but the strategy’s success depends on the data center project’s execution. The company faces ongoing scrutiny from activist shareholders and must navigate volatile Bitcoin prices. For now, the market has signaled approval, but long-term viability remains uncertain as Empery pivots from its Bitcoin-first approach.
